All Forum Posts by: Jared Hottle

Getting this question alot. I am going after BRRRs right now but not because prices are really coming down but because it seems like we are shifting to an environment where contractors need work that we didnt have last year. The BRRRs are not as good but can get them done cheaper and quicker and the time value of money make it worth it to me. Of course refinancing as soon as rates go down but I say its a good time to buy.

This is explained very well by @Drew C Grossman In my market there is a top number for rent that is just hard to get above whether it is a 130,000 house or a 300,000 house. Better to do a BRRR on a 100k house and get 1500 for rents then buy a 300,000 house and get 1600 for rent.

Another option is cross-collateralizing your home for the down payment of the multifamily. Then you are not paying interest on it just using it as collateral. Down side may not be able to get as much capital as a cash-out refinance would allow. Talk to some local banks in your area or in the area you are looking to invest to see what options are best for you.

This certainly is the hardest part of the BRRRR right next to finding a deal. You will never be perfect but you can get closer with experience. Prepare to break even or have to leave some money in the deal on the first few especially at a distance as you find good contractors and understand who is giving good advice and who just wants the job. There will be pain but that is why it is still possible. Standardize as quickly as possible with style of property and finishes and it will become easier.

I think if you are out of town that plays a huge role in opportunity cost so because of that I would do a junk service. Find someone reputable online or from a referral. Then it is done and not lingering. If you are going to the area anyway lining up a dumpster and finding some hired help is a good option but if you are making a specific trip for this you need to take the cost and time of that into account. 

Also will want to check local tenant laws. The college town in my area requires an off street parking spot for every person over 18 occupying the residence not necessarily a parking spot per bedroom. I do find this very common with college kids.

It is tough but I think introverts are better at providing value in relationships or conversations because they are not just talking to fulfill their inner needs. I think like working out, eating healthy, saving money, etc. It requires setting goals and discipline. Set a goal to go to 2 networking events a month and have lunch or coffee with one new person each week. It will not be fun but you will be in a great place if you spend a year doing this. 

I think remove it and install it at your house or in your garage and leave the baseboard heat. Anything that requires tenants to buy stuff from the store and successfully get back to their house to operate it will likely not get done (see water softener) having a one off like that that tenants are not familiar with may lead to mistakes in operation. I do like pellet stoves so using it at your place is a great option or put it on FB marketplace and make some money off it. 

This is a great question. I believe it starts with education. Learning from biggerpockets, meeting people, meetups, books, etc. I think you need to own property yourself so you understand the struggles and build experience. If you cannot afford to buy an investment property start with househacking. I find alot of newer investors look at this strategy and to have some advice is invaluable. 

Other traits that are important. Know your area extremely well from a rental law/registration situation, know the players (PMs, contractors, inspectors, suppliers, etc), attend meetups or start one if there is not one in your area. 

I agree contact your local office to get the rules for your area. 60 day notice and does have to be at or below market rent but that seems to be subjective sometimes so having a conversation with them is always best.