All Forum Posts by: Jeremy Paschedag

Thank you again @John Leavelle! I have read about BRRRR and such, but until I was put it in terms I could understand/relate to, I wasn't full appreciating the concept. I'll have to read up on HELOCs.

If I refi, do I need to put 20% down, thus taking more from the $36,375?

If after all expenses, you are only clearing $100-200, it doesn't seem like a good rental opportunity. It's not ideal to purchase a turnkey property for a BRRRR. I'm assuming this was turnkey as there are no repair/rehab costs shown. You should find a property that is valued under market price. Usually that would be a distressed property that requires rehab work.

On a side note, I think it would be interesting to present you as the property manager to the prospective buyer.  Good luck to you!

Welcome to BP!  Good to see you have a plan.  Work it and don't get discouraged.

Thank you @John Leavelle. Yes, I am familiar with BRRRR. Though when I bought my rental, I didn't know BP existed and didn't know what I was doing. I just bought a house, did some light rehab work, and have had it rented out for about 4 years. So I have equity that has grown due to time.

My mortgage payment is $800.  Seems high, but it's also a 15yr loan.  The bank has a plan to pay half that amount every 2 weeks.   It does not meet my requirements.  If I knew then what I know now, I might not have bought it.  I believe a refi would drop my payment to around $600 per month.  Which would be better cash flow.  If I were to do an equity loan, that would be an additional expense.  Thus making my situation, less good.

Sale price was $100k, I put 20% down.  I put about $10k into it.  I haven't had to make a house payment without a tenant.  Payoff amount is $60k.  Realtor.com has the value at about $128,500 and Zillow has it at about $153,500.  That would put me at about 80%.  Right?

What I thought, was that I would cash out at say $120k.  Payoff original load, leaving me with $60k.  Put down 20% of $60k payoff.  Leaving me with $48k, less closing costs.  Is this not right?

Hello @Megan Greathouse, @Travis Turnbull, and @Bill Henley I'm in St. Louis. Been on BP for about a year. I have one SFH now. Was working on a couple multi-families when work took me out of town since August. Once finished with the project, I'm hoping to get 2-4 more properties. Feel free to connect with me.

With the first property, it's currently on a 15yr mortgage, but if I were to refi, I'd be looking to go to a 30yr.  Does that change anything?

I hadn't thought about an equity loan on the first.  What are some pro's and con's?  At the end of the day, are my payments for the 3 loans the same as it would be for 2 - 30yr mortgages?

Can you tell me if I'm understanding BRRRR?

I have a SFR that I have had for 4 years with a 15yr mortgage with a tenant that I bought for 100k. Some reno's have been done. Payoff is 60k. If I cashout refi for at 80%, I'd need to put down 12k, plus say 2k for closing costs. Leaving me with about 26k to put down on a new property with and adjustable arm for 5 years. Make some reno's. After about a year, cashout refi for a 30 yr mortgage and repeat.

Thank you @Kayla W.!

Love your product, by the way!

About 9 months ago I searched BP for this same topic.  What I learned is to stay away from PayPal and credit card payments.  Both of them error on the side of the tenant.  Meaning the tenant could dispute the charge after they have moved out.  For me, that is not going to work. 

I've been using Cozy since last July.  Easy to use for both tenant and me.  Some things to keep in mind.  As already stated, it generally takes 5 business days to receive payment from when the tenant sends it.  You can pay to have it express payment in 3 business days for $2.99.   The other is when your lease expires, tenant can't make a payment.  If this happens, you have to reenter all the info again.  If you catch it before it expires, I believe you can change/extend the end date. 

If you are going to end up with anywhere close to $80k, I would think about getting 2 rentals.  Putting 20% down on each.