All Forum Posts by: Jack S.

Hi all i was just wondering everyones opinion on the BRRR with and without refianancing and repeating ?

As an example Im aiming for a 60k property needing a little work spending around 10k on and aiming for an ARV of 100k-110k. Rent the property out at £500 per month.

After the deposit + rehab and fees i would be around £27k into the deal and a mortage of around £45k . Equity would be around £55k as an example

Would there be any benefits to refianance and repeat ?

Thanks for the help

That makes sense i totally agree with what your saying . so your using the equity in the property to move onto something bigger later down the line and repeat.

i worked out 1 year down the line that i would have a £22.5k mortage on a £58k propery so say i did sell the flat and after all the costs and fees there would be roughly £30k profit

i could just keep repeating that process ??

HI all what do you mean buy 1 every year and rent it ?

could you explain this strategy ? thanks =)

Fist off i want to say the BP forum is amazing it has alot of posts that have answered my questions so thankyou.

I want to start of by saying im self emplyed and i work full time earning good money, with my job i can save around £18k per year for my idea

Im 22yr old and live in the u.k . I havent give myself a time gap to do this in as there are still a few things i need to learn.

I WANT TO HAVE A PASSIVE INCOME OF £4-£5K PER MONTH IN THE QUICKEST TIME GAP

BUT IM NOT SURE WHAT WOULD WORK BEST FOR ME.... HERE IS MY METHOD BELOW.

i know about insurances and fees ect ect but this is just a rough method to get everyones opinion

My Strategy.... To Use the BRRRR Method but not refinancing the property ?

Here in the north of the u.k a 2bed flat in my area which needs a little work costs around £35k and rent for £375pcm

I would be taking out a buy to let mortage which requires a 25% Deposit = £8750

All Fees Total around £3000

I would Give myself around £5-6k to Rehab the property 

The 2 bed flats done out to a good standard sell for around £58k

i would rehab the flat out of my own pocket so i would have a £26,000 Mortage in total 

every years rent would = £4500 off the mortage as it would be repayment

After the first year i would be left with a £22,500 Mortage and i would have been able to save another £18k from my job .

i could use that 18k to basically pay off the mortage and then wait about a year or so to Repeat this process , Or do it all again and have 2 flats with 2 mortages ect and rehab and rent ect.

The Method im thinking is quite a long process before i actually make a passive income and own the properties . it works out roughly in 8-10yrs time i could own around 5-6 Flats worth £60k each and have an income of around £1800-£2200 which isnt alot but i would own around £300k-£360k of property.

My Goal is to have a passive income of around £4-£5k per month so i can stop my job .

My method above ISNT GOING TO GIVE ME WHAT I WANT I KNOW but im a little confused of what would be best for me ?