All Forum Posts by: Dennis Gallagher

Hello fellow RE experts and investors. I am working on my first BRRR, and am close to finishing up the rehab. I was informed by my GC that over the weekend, the brand new HVAC was stolen. Although there is no way to prove this, (I reside in FL; the investment property is in AL) my GC tells me the unit was secured by a cage and bolted down. He is telling me that it is my responsibility to pay for a new HVAC unit which will run between $7k-$8k. I have a few questions:

1. Is this really my responsibility?  I think it should be the GC’s.  For all I know, it could have been in the back of a truck where it was stolen while the driver was inside working on something else. 

2. Should the builder file a claim under his own builders policy insurance license?

3. If all else fails and it falls on me, do you recommend I file a claim under my PP insurance policy (I have a police report).

Thank you for your suggestions/assistance! 

I'm using the BRRR calculator to analyze a few opportunities. It's pretty good but I do have a few questions around the metrics:

1. Can someone explain the variables that are used to calc the Income-Expense Ratio. More specifically, which expense variables are used in the  ratio?  When I divide my Monthly Income by the Pre-refinance expense and Post-refinance expense, I'm getting a different ratio than what the calculator is saying.  

Also, for the experienced BRRRR folks out there, are you holding true to the 50% Rule on Cash Flow on each project? It's all about how much equity you want to keep in the house based on the Refi in order to maintain the 50% rule.

Thanks much.  A clear newbie.  

Good morning BP community. I find myself lucky that I came across the BiggerPockets podcast a few days ago and now stumbled across this community. I've owned a Payroll/HR/HCM company for the last 15 years and am now looking to transition my time and resources to help my son with his new Wholesaling and Real Estate Investment company. We are just getting going..and my only experience is with buying my current and past primary residences! So we are "newbies" to say the least. We're looking at a strategy focused on BRRRR (looking at good markets in SE US like Birmingham, AL), and large land wholesaling. Also trying to find the best strategy for cash-on-cash return (reoccurring) but struggling a bit here. I have resources to invest so the focus in on Cash Flow and large returns (hence large land wholesaling) Any suggested strategies for this is appreciated!