All Forum Posts by: Jeff Faulkner

CoC is only one metric. Cash flow is another. And there are others. The CoC on your subject property is abysmal. The cash flow is mediocre but a base hit, maybe a double. You're a ways off of a triple, home run or grand slam. You would have to have killer appreciation to make this deal worth it. I say your options are get out of the deal and keep doing the hard work of looking, or do the deal and get an education. If learning is what your after, it's a no lose proposition. If money is what you're after, reconsider.

Chris - not theoretical, it's math. But I appreciate your input. I'm just wondering from a pure cash flow perspective, does it make sense to do interest only. I'd like to hear from some experienced BRRRR investors, rather than lenders. Anyone?

So, my question is really about cash flow, not about how much interest I’m paying. If I don’t have to pay principal payments for the first several years it would increase my cash flow and potentially make the deal make sense. Downside is the only equity build up would be from appreciation. More thoughts?

I'm implementing the BRRRR strategy and plan on selling the homes at the 5 yr mark as Brandon outlines in The Book on Rental Property Investing. What kind of loan would be best for this strategy? Interest only, 7/1 ARM, Conventional Fixed? Any thoughts on this would be much appreciated!

I’ve got access to capital. The smoking deal on the front end is the hard part of this business. Thanks for confirming my thought.

For the BRRRR strategy to work effectively, it seems you need to get all your initial invested money (purchase and rehab cost) back in the re-fi. Which means that you still need to find a really great deal on the front end and be able purchase homes at 60-70% of value. Can someone please confirm this?

I'm considering turning my one rental property into a BRRR strategy. I am also considering leaving my current job to work on this BRRR strategy full time. Is refinancing the properties possible without an earned income?

When evaluating a multi-family property, should depreciation expense be calculated into Expenses when estimating expenses and determining ROI?