All Forum Posts by: David Veikune

Welcome Scott!

There are a lot of different ways you could go about this. If you went with a conventional loan they would just loan you the money for the purchase of the home not the rehab so for the rehab you may need to go to a private money lender like a friend or use a hard money lender who who may charge 5% off the top and another 15% annually. If you can get a 203k FHA loan they will loan you the money for the purchase of the home and the rehab. There are tons of options out there for you James. It really comes down to your exact situation at this exact time.

Good plan. Just make sure to numbers make sense and you should be good.

If I was trying to keep it as simple as possible I'd say lenders are passive investors and investors are active investors. If that makes any sense. 

As long as it has everything you want out the deal in it. Make sure to have an exit clause. 

I played with the numbers. As long as repairs are low it sounds like a great deal. I added 8% vacancy,5%repairs,10% cap ex and 10% prop management. The roi was in the 20%. Very good.... in my opinion but that's just based off your data. 

Welcome Stuart!

No problem James Im a newbie too. BRRR stands for Buy,Rehab,Rent and then Refinance.

Example. Buy a beat up Single Family Home,duplex,triplex or quad for 100k,(15%down=15k+closing costs lets say+10%=10k)Total 25k. Rehab for 20k-30k. Total out of pocket 45-55k. Then rent out the extra rooms you have in a single family home or rent out the other rooms in the duplex,triplex,or quad. Make sure you use the Bigger Pockets rent property calculator to find a good buy so that the cash flow at least pays all your expenses so you live for free. Then hopefully you cash out refinance the home for say 150k and get to pull out the new equity that you've made in the house to buy more properties. Rinse and repeat.

Awesome! Congrats Anne!

Sorry to hear about the situation James. Sounds like you have a decent plan at the moment. Buy what you can now and maybe you can do the BRRR method to get a nice 3 bedroom for the family. Best of luck.