All Forum Posts by: Jake Baker

What tools or processes have you implemented to estimate rehab costs more accurately and avoid scope creep in BRRRR projects?

BookkeepingRE can swiftly bring financial records up-to-date and help you capture all deductions. 

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@Mary Ainsworth

For my flipping business, I prefer to use fewer software programs to streamline things. We use DealCheck to underwire and QuickBooks Online for everything related to accounting and numbers.

@Marc Shin

I recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521

I have found all of my best BRRRR connections at local meetups.

@Bria LaShee

Be sure to be conservative with your numbers:
Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.
ARV: Be conservative on your ARV since the appraisal concerns one person's opinion.
Timeline: Whatever a contractor says, add 4-8 weeks.

25k for the rehab seems light. What do you plan to do?

@Marquise Bailey-Dillard

Congrats on becoming debt-free and on your first successful BRRR/house hack—it sounds like you've built a solid foundation!

You should have no problem getting a HELOC with no bad debt. Rates will be 10-13%, depending on the terms.

A HELOC can be a good tool to leverage your equity for a down payment without touching your current low-rate mortgage. HELOCs are great for shorter-term investments like flips or rehab on a BRRRR project. This way, you can pull the money out in less than a year.

A cash-out refinance might be better if you want to park the money somewhere. Even if you get a higher rate, you don't want a HELOC loan stuck in a long-term investment.

@Roy Logan

Immediate Communication - Respond quickly to the seller or wholesaler to show you’re serious. Time is critical, especially in competitive markets.

Clear Offer Terms - Present a firm offer with terms that make the seller feel confident that you can close fast, with minimal contingencies or proof of funds.

Due Diligence Preparation - Have your financing lined up and know your repair/rehab costs in advance so you can move quickly without second-guessing.

@Eric Carlstrom

My STRs tend to experience more frequent repairs than my long-term rentals so I tend to budget more for repairs and maintenance. 

Cleaning after every tenant does great, but every so often, you need a deep clean. I hire a specialist to come in and deep clean for an entire day 4 times a year. 

@Jake Hughes

More experienced investors may have access to Private Money. This can provide more lucrative opportunities by allowing you to take advantage of lower closing and holding costs while keeping much or all of your money out of the deal.

Every investor starts somewhere. Hard Money is often the first stop. A private investor will want to see a few successful deals before taking out large sums as a debt loan. Even still, investors will often want equity in the projects.

Giving equity to private investors can hedge your bet. If the project goes sideways, you are not 100% liable for the losses. Pros and Cons, Risks and Rewards to every financing strategy.

@Audrey Ann Dumont

I have been using Lighthouse Property Management for 5+ years now. They are great.