All Forum Posts by: Josiah Sia

Starting out with REI and the BRRRR process seems great. For someone with minimal connections and little capital ($50k) it will be difficult to do a complete BRRRR project. Almost everything I've read or listened to in the BP podcasts and forums showcase doing the BRRRR strategy with hard money loans or cash.

Is it possible to do the BRRRR method with financing to start the process off (buy), then refinancing after the seasoning period? Say doing a conventional 5% DP loan to purchase a property, then doing a refinance after the appraisal after the rehab? Is there any major negative or downsides to doing it this way? Or am I missing something and this wouldn't really work?

I was wanting to get into 2-4 MFHs already but do you think it makes more sense to start off with SFHs? Was actually looking to kick off with a quad!

Howdy BP community! Loving everyone here and all the insight into real estate I've been getting. I'm a complete noobie and I think I've been asking the wrong question so far because I keep going back to the drawing board. 

My wife and I are diving head first into this game. Our goal is be financially free with $15-20k in monthly passive income in 10 years. We've recently took our budget and loans to the chopping block and are able to save $49k annually of extra income to use towards this journey. We have a starting savings of $40k. 

Instead of asking "will X or Y plan work," I'd like to ask all you more experience investors; How would you achieve our goal with our financial situation as it is? SFH or MFH buy and hold? BRRRR? Buy and pay off SFH/MFHs to maximize cash flow? How would you start? How would you build/ramp up or "work the stack?"

Please advise. Any input is greatly appreciated.

@Spencer Cornelia Thanks Spencer! That makes sense.

Thanks for sharing! Nice before and after on the outside!

What is sellers concessions if you don't mind me asking? Did you not have to front the $94k? So when you sold it for $159k, is that when you paid off the seller and just pocketed the rest?

Noob here trying to learn as much as he can before jumping into the deep end :)

P.S. Omg that kitchen is gorgeous.

It's funny you mentioned this. I just got to Chapter 15 on Brandon Turners Rental Property Investing book and be breaks the difference of going all in cash vs utilizing a conservative LTV. Now I'm re-thinking...

I might adjust the plan to when the year is dry to pay off half to support the other half that is financed. And do something balanced like some of the previous suggestions. I'm sure more things will pivot along the way since plans are just meant to be a stepping stone and not always followed to the T. I'll keep this in mind as I'm starting to understand the benefits of the financing route a bit more.

We'll see how this bug affects me when it bites! I'm going to adjust the plan a bit already to purchase more properties vs buy and pay down and not buy until paid down. Sounds good! 

Everyone keeps telling em this! Must be right! hahah

I'll definitely pivot my plan a bit to maybe do what some others here have recommended where I use my financed properties to help pay off half my other properties.

Great advice!

Thank you! I'm always looking for more books to read and learn from. Trying to finish @Brandon Turner 2 books right now. 3/4s through Rental Property Investing right now!

That's quite a bit of capital to save up for my first purchase... Maybe I do a quad first and then get experience with that and build up :P 

That's awesome! I did the same hahah

50, 100, and 200 cash flow per MFH unit and when they are fully paid off. Helped my wife get on board :)