All Forum Posts by: John Anderson

Interested to hear about how the current rise in lumber, steel, etc. is affecting the ability of folks to BRRRR. Was at Home Depot and couldn't believe how much prices have skyrocketed!

Hi all,

I currently have two small investment properties on which I have a mortgage at 4.5-5%. Rather than try to beat my head against a wall by trying to find deals in this crazy market, I am considering refinancing my primary residence @ 2.75% and using the proceeds to pay off these loans and lower my monthly payment.

Are there any issues with this approach, or warnings that a more seasoned investor would have for someone in my situation? Thanks!

@Joe Villeneuve

Thank you! In your analysis, do you assume any rent increases or does the property have to return your initial capital on “day one” rents over five years?

Fair enough - let's say you put down $100k as a down payment and were receiving $400/mo cash flow.

For the same house, compare that with a scenario in which you put down $60k and were receiving $300/mo cash flow.

To me, the second scenario seems better. My investment drops by 40%, but my cash flow only drops by 25%. With that being said, I realize that percentages may be misleading so if there's anything I'm missing please do not hesitate to let me know! Thanks!

Hello BP community. I’m curious to hear from both early and seasoned investors.

If you had the opportunity to put down less than 25% on an investment property would you be willing to take less than 1% in rent per month? For example, if you only had to put down 15% and earned 0.8%, would you still do the deal (assuming no other red flags)?

Hi all,

I would like to purchase a home near my son in a neighboring city. Unfortunately, I was let go during Covid and currently have no W-2 income. I have ample savings and a good credit score, and one of my other children who earns good money has agreed to be a co-borrower. Would I still be eligible for a loan?

Hello I am currently in a bit of a difficult situation at the moment. I am in the middle of fixing up a duplex that I had planned to owner occupy using a FHA203K loan. However, my employer is asking me to come back to the company headquarters (I am currently a remote worker) and I am worried that I am going to get in some trouble with my lender because I have not lived in the property for a full year. Is anyone familiar with the consequences of someone having to leave an FHA financed home within one year of purchase?

Apologies, I realize it’s a very broad question. However, I am looking to start my real estate investing journey, and I am curious about where I can get the most bang for my buck in terms of adding value to properties?

Is it adding bedrooms, bathrooms, converting a duplex to a triplex? Any and all advice would be greatly appreciated. Thank you in advance!

@pavan sandhu thank you! Just sent you an invite.

Currently live in the SF Bay Area. I am thinking about adding an ADU to my current property. Rough numbers below.

Cost: $310K

Rent: $2K-$2.2K

2bdr, 1ba

I realize that this will not meet the 1% rule. However, from a high-level perspective does this look reasonable? Anything I need to watch out for? Thank you!