All Forum Posts by: Eduardo Sagues

Hi, 

What are your target metrics when underwriting a BRRR deal? ROI, IRR, MOIC, specific profit $ or %

I have a deal in Marietta, GA that seems a good ROI and IRR but the profit $ is only about $14,000 (4% margin on total costs) on a 285K purchase price. Clearly the ROI is interesting because I'm using a hard money loan and my equity is low but the profit $ is pretty low. It will be a negative cash flow property due to refinance I'm assuming 7% interest

Thanks

Hi, 

My wife and I are getting very close to jump to the out of state investor world and I've been analyzing several markets in the last few months. I work for a real estate private equity/developer in CA and my wife has and interior architecture firm in San Francisco so we want to start leveraging our skills for ourselves... I'm looking now at a few properties in Augusta, GA. I've heard good things about this market and I like what I've seen so far. I'm just starting to create my network there (talking to agents, PMs, contractors, etc) Looking to buy a <$300K SFH. The intention is to do a BRRR. Anyone in the forum with experience in Augusta, GA? I would love to hear your experience, the goods and the bads!

Thanks!

Thanks for your replies! Very helpful. Brittany, I'd love to connect with you and discuss further. Maybe you can help me with my financing

Hi! 

First time writing here. I want to start investing out-of state. I am planning to use OneBrokerage to help me finance my first rental + some F&F hard money lending. The plan is to buy a property, remodel it and do short-term or mid term rentals in Augusta, GA. Because I'm using a pretty high leverage to get started and minimize my equity ( I understand this is a risk) the interest rate on my acquisition loan is likely going to be 11%. Once the rehab is done I'd like to refinance and grab some of the added value. What is a realistic LTV that I can get once I refinance? and what type of lenders do you recommend I go to? Most lenders I've talked to they only do 70% (traditional lenders) but with a 70% LTV I wouldn't be able to pay off my acquisition loan (clearly I wouldnt be able to cash out). Maybe this is just an issue of the ARV I'm estimating and/or the fact that coming in my LTV is high, but that is something I have some flexibility changing. However, I just want to have more or less realistic expectations on LTV and interest rates (now) to refinance given this will be an investment property.

What are others doing on this BRRR strategy

Thanks for the help!