All Forum Posts by: Jonathan Styer

Would definitely take this question to your accountant but I imagine the IRS will look at who owns it regardless of "intentions". You're basically using a government backed loan to make your terms better then want the advantages of using an LLC.

Sounds to me like you will be effectively the property manager and your fee will be the difference between the rents. In Ohio, you need to be a licensed broker to manage properties. Just something to consider. Sounds like the numbers work pretty well. Personally I'd like to buy the property before anything else as while the cashflow is nice, you are not benefitting in other ways such as appreciation and depreciation.  

You're right, sewers cant handle it. You may be able to put a one way valve in, speak with a plumber about that. Maybe if work with your neighbors you can put some pressure on the city to improve the sewers or install sump pumps in the homes. Good luck. 

BRRRR is great because if you do it right you can just keep doing it and build up your portfolio. With something like $200k that is a good amount to be able to do BRRRRs. One thing you want to keep in mind is that depending on your lender there will be a seasoning period so it may take some time to get your cash out.

I would start small while you're getting your feet wet. It should not be difficult to do a cash out refinance with the right lender. I would start lining that up ASAP so you know who you plan to work with. 

Good luck!

I see, I'm used to seeing CoC. Ideally for a BRRRR you will get infinite cash on cash return as you leave no cash in the deal and pull it all out on the refinance.

What is CCR?

It's hard to say without knowing the bigger financial picture. A lot of folks advise against borrowing against your primary, but then again, a lot of folks do it. It depends on your financial comfort level. 

For BRRRR's I think a HELOC would be a better strategy, you're just paying interest on the money you're using at the time and as soon as you cash out the BRRRR you can pay it back.

Did you have roommates? Surprised you did not see more appreciation over those 3 years. 

Sounds like you want to use the BRRRR tool. Off to a great start, congrats!