All Forum Posts by: Jason Chen

Looking to implement the BRRRR strategy on my next investment. I am wondering can you do BRRRR with this kind of property that is currently occupied by tenants? Do you evict the current tenants and do the rehab and rent again with a higher rent amount? What if the current rent is already inline with the market rate? The point of doing BRRRR is to bring up the home value, so you can refi to get the money out again and reinvest to another property. Does that mean you will always kick out the current tenant to rehab the property?

@Nathan, thanks so much for the detail steps! I will look into this.

I am based in the bay area and looking to buy multi family investment properties in Stockton. I am looking for property management that can help me manage the investments. Please let me know if you have any recommendation for property managements in the area. Thanks in advance.

@Jared Skov

Currently, the property that I try to get money from is currently on 30% LTV with 4.7% interest rate. I am looking to invest in MF property. I get quotes around 5.2% on 30yr fixed for cash out refinance, and 5.7% for HELOC. It wouldn't be a problem for me to get the cash amount I need with either approach, but just try to see which one will be better in my case.

I want to get cash between 100k - 200k from my property, and I will use the money to purchase more real estate investments, potentially out of state. I currently have options for either doing a cash-out refinance or HELOC. I know both options have pros and cons, and I am having hard time decide which approach to take. I would like to hear what others would do in a similar situation and why. Thanks in advance.

@John Leavelle

So how much higher rate do you think is reasonable to be used in the initial analysis? 

Hi @John Leavelle, thats exactly my point, with a higher rate and shorter terms, your monthly payment will increase and some deals that will provide enough cashflow with the original loan might not give enough cashflow or even negative cashflow with the refinance loan. 

Good point @John Acheson!

I love the BRRRR strategy and want to implement that towards my next deal. However, with the interest rate keeps raising, is the BRRRR strategy still going to be effective? Wouldn’t you run into the situation that you will no longer have a positive cash flow after you refinance with a higher rate that causes a higher monthly payment?

Thanks, @Jon Lee! I will PM you for the info. Looking forward to connect with you too!