All Forum Posts by: Jake Baker

@Stacie Telles

Most lenders have a seasoning period (typically 6-12 months since the original loan), so check with your current bank or shop around for others.

I would also watch out for prepayment penalties on your current loan.

@Anthony Kolbusz

BRRRR method is a fantastic strategy, especially with your trade experience. Rehab cost overrun is where most BRRRR investors and flippers go wrong. You can save a lot on costs if you do many repairs yourself.

Look into hard money lenders or private lenders for the initial purchase and rehab.

Connect with wholesalers, agents specializing in investment properties, and other BRRRR investors to find deals and learn more. If you want private investors, start by asking friends, family, or colleagues in your network who may wish to a passive income opportunity. Share a clear business plan with numbers showing expected purchase, rehab costs, ARV, and rental income. Investors love seeing a solid return on investment. An experienced private money lender will want to see a track record.

@Blair Ross Jr

Electric/Gas:
Contact the utility provider to see if separate meters are allowed for your property. You'll likely need an electrician or plumber to install separate lines/meters. Costs vary but can range from $1,000 – $3,000 per unit.

Water/Sewer:
This is more complex and may require approval from your local water authority. Plumbers can separate lines, but trenching and additional work can drive costs into the $5,000 –$10,000 range. Some areas allow sub-metering instead, which might be cheaper.

I would contact a local contractor or utility company to assess your property and get quotes.

Stessa is an excellent, user-friendly platform for tracking income and expenses for investors. However, its downfall (and what makes it so easy) is that it is a single-entry system.

This means there are no checks and balances to ensure all transactions are entered correctly. A double-entry system (like QuickBooks) allows you to reconcile your bank statements, ensuring no missing or duplicate transactions. I would recommend Stessa so much more if you could reconcile; hopefully, they will! Or maybe they do now since the last time I used it. I would look for a double-entry system that allows bank reconciliations. Most bookkeepers won’t work in it if you plan to outsource it in the future.

@Kevin Brown

I use QuickBooks Online (QBO) for my flipping business, Airbnb, and bookkeeping clients.

QBO has every feature to run a business, excellent reporting features, and integration with other software. It is the most popular software in the industry, and most Tax Preparers are familiar with it, which makes tax season easier.

However, many on the forums will advise against QBO. It can feel like feature overload. The main reason is that it is not initially set up for a Real Estate business like other “real estate-specific” accounting software. It takes a certain level of QB knowledge to set it up correctly.

@Steven Nguyen

The BRRR method is a solid strategy, but careful planning is key. Here's some guidance to help with your next steps:

Hard Money Loan:
Hard money lenders can often cover both the purchase price and some rehab costs (up to 70-75% of the after-repair value or ARV). You'd need a detailed rehab estimate to confirm if the numbers work for a $360K property with an all-in cost of $420K. Most hard money lenders require 10-20% down payment of the purchase price or total project cost.

Holding Costs During Rehab:
Yes, you'll need to cover carrying costs, including hard money interest, utilities, taxes, and insurance. Budget these carefully into your overall project plan to avoid surprises.

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.

@Robert Stephenson

It’s great that you’ve built solid equity in your current rental property— Here are a few options to consider:

Cash-Out Refinance:
You can refinance your rental property and pull out some of the equity to use as a down payment for another property. You may find this a viable option with rates where they are, especially if your rental income continues to cover the mortgage.

Home Equity Line of Credit (HELOC):
If your property qualifies, you could use a HELOC to access the equity without disturbing the current mortgage. This can give you flexibility for purchasing or even renovating the next property.

@Avani Patel

For my flipping business, I prefer to use fewer software programs to streamline things. It's easy to get bogged down by too much software in today's world. We use DealCheck to underwrite deals and QuickBooks Online for everything related to accounting and budgeting.

@Jesse Yoder

I agree with @Sofia Komrskova about the policies. Make sure to communicate your BRRRR strategy with your insurance agent so they can recommend the right coverage for each phase.

I learned this lesson the hard way: https://www.biggerpockets.com/forums/853/topics/1222933-my-b...

@Shayan Sameer

The non-paying tenant could impact your short-term cash flow, so consider the potential costs and timeline of eviction in your state. If you’re using financing, this situation might also influence lender decisions.

I have many rentals in Jacksonville FL and have had to evict three tenants. The process was fairly smooth for me. Many investors may shy away from this investment because of that bad tenant. However, you may be able to get the property at a discount, step in, and solve the problem.