All Forum Posts by: Joseph Komarovsky

Hey, hope y'all are having a great day!

I'm looking to get into small multifamily investing full time using the Brrrr method. I have experience working and managing construction.

My issue is that I don't have W2 income for 2 years and enough cash saved up to buy cash. I've done some research, and it seems like I would have to use hard money and private money lenders for the purchase and the rehab, and use some sort of DSCR loan for the refinance.

My questions:

1) Does the above strategy make sense, and can it be profitable & scalable?

2) When using hard money and private money, even if I get a great deal and I'm able to cash out 100% of the money invested, how do I pay the interest on the hard/private money loans? Do I need to save up money beforehand to pay the loan interest... or is there a way to go at it using OPM?  

Thanks in advance!

 The discussion isn't regarding a primary residence. Freddie was asking about purchasing it as a rental property, so the tenants will pick up that mortgage. You are correct that the refinance loan will be a larger loan and thus the mortgage payments will be larger. And as a result, the cash flow will be less. However, You no longer have all your money stuck in the property, you can take that money and purchase another property. By repeating this process over and over and recycling the same money you can potentially build a large portfolio and generate wealth. Obviously, you need to rent them all out to pay off the loans, that's the game of real estate investing!