All Forum Posts by: Jillian Jones

@Holly Kaufman hey Holly, do you stay more in your reserves per month for repairs and maintenance. How much are you turning over tenants? What’s the clean up cost like for you when a tenant moves?

I agree with @Caleb Heimsoth. I think if you were paying into your repairs, capex, and vacancy at a higher rate that is the definition of conservative. If you give yourself criteria on what you’re looking for and how much you want to pay for what you’re after it will be less properties that will be viable but the ones that fall within that sweet spot will become your bread and butter. Being selective is not a bad thing. This one has too thin a margin for me. I look for pp and repairs all in to come in under the 1% rule for rent. It’s just a guiding rule so that I don’t get too carried away and over buy or undercut repair costs.

Hey chris, just based on your ARV I don't think you have room for a cash out refi. Most banks want you to leave 20% in the deal, you would end up paying closing costs and more out of pocket. If you're looking to refi you may need to wait until you have more equity and your property appreciates. The aim is to have closing costs + total loan amount all equal less than 70-80% (depending on the lender) so that you don't pay costs out of pocket.

For a rate reduction refi it might depend on if you bought the property in your name or your LLC. Investment properties naturally have a higher percentage but if it is an an LLC already then I think you got a pretty good rate. It's up to you if you want to spend more money on closing costs.

Final answer: shop around and see what kind of rate you could get, if you find a good one ask the lender to calculate closing costs for you. Plug in the numbers and see if it’s worth your time and effort.

@Gaurav Bhasin hey I’m going to add you as a colleague. Are you managing the property yourself? If you have a property manager what was your vetting process? Did you use a local lender in Killeen?

@Kevin Moules I haven’t come across too many in Lubbock but if I do, I’ll keep you in mind!

@Kevin Moules it’s funny your mention it I live in Texas! 

I'm working on making an offer today actually. I was just on FaceTime with my realtor because the place is an hour away and I didn't want to take time away from work to see every single house. I have read a few books on investing. Currently devouring the BRRRR book and I'm going to start on the book on property management next. The place I'm looking to buy is close to an Army base and it's a 4plex. For my first deal I'm looking to house hack because my lease is up in 2 months and I feel ready to get involved after spending a few months analyzing different markets close to me.

The place I’m looking at is great, fully rented, little to no repairs, wish me luck on my offer!

I know a few wholesalers sent me off market deals today for Houston, Dallas, and Fort Worth areas. I’m pretty comfortable running the numbers in those areas as well as Killeen, FT. Hood and Waco. If you want to, shoot me a PM with what kind of numbers you’re looking for. For me, I’ve seen some good deals but didn’t have the confidence or knowledge to move forward until now. Property taxes aren’t cheap but the rents I’m coming across are pretty strong.

@Stephen Miller look for portfolio lenders in your local area. They will require 20% equity to stay in the deal at the very least but they don't care about your DTI. They may consider your property owned free and clear because you don't have a mortgage on it. This is a great position to be in. They care about the value of the property and it's ability to pay its own expenses. Good luck! I've seen others get through this sort of deal as well.

@Kevin Moules yes you answered my questions. Got a couple more for you. Did you finance this deal or pay with your own funds? Hard money? Private lender? Rehab financing?

Hey Kevin, looks like it's coming along nicely! As your first BRRRR investment what made you go with a full gut rehab? With it being your 3rd property there must be some challenges along the way you could not have foreseen without getting into it and starting the process. Would you mind sharing about some?

I’m in a similar situation where I want to get going in real estate but I don’t have enough for a good 20% down payment. Hard money is an option if you want to get started with lower priced houses $30k-$50k.