All Forum Posts by: Justine Scheuher

Hey BP Fam, I am trying to wrap my head around how the repayment of private lenders works, specially while using the BRRRR strategy. Can y'all give me some examples of your terms/stipulations. For example, is a specific date of repayment set in advanced? What happens if theres a delay in refinancing? What type of interest does the private lender receive--a set amount? percentage? or interest? Thanks

@Stefanie Jensen Love that you asked this!!! Im right there with you!! Except I'm not married...however, my boyfriend is the biggest "chicken little." So it makes my decision easier--my money, my way :P  but It would be nice to have him on board to emotionally support me. Hope that your hubby sees the numbers and becomes more open to it!

@Andrew Syrios Thanks for the perspective. Ideally, I would like to "BRRRR out" so I can keep reusing initial money. I think the intimidating part is the rehabbing portion because I have little to no rehab experience and would have to hire a contractor.
I am still trying to figure out all the details/looking at financing options. What are the most common loans called for buy and hold investment property? My first FHA loan was so easyy!

@Shaun Palmer this helps a lot! Great suggestions. Thank you, I appreciate it! 

I am looking to buy my first intention real estate property (currently house hacking a single family home). I am interested in using the BRRRR strategy but have very little knowledge on what repairs/rehabs cost.

When should I get a contractors opinion/bid? I would like to know estimated costs before making a offer...is it normal to get a contractor to look at a house before you buy it? Or wait for the inspection, and back out/negotiate then?

@Aisha M. I am that exact point--deciding whether to go with a Single Family Rental (SFR) or Multifamily Rental (MFR). I would likee a MFR, but not opposed to a SFR near the University of Louisville for students/sorority. Right now, I'm in that saving period/learning period/practicing-analyzing-deals period.

Im also trying to decide between doing the BRRRR or Buy/Hold method. BRRRR, is slightly intimidating to me right now, but I'm trying to wrap my head around it/the finances.

Brandon Turner just did a Webinar 2 weeks ago about investing in MFR's. If you become a PRO member you will have access to it. (Register for the Webinar tomorrow and watch it/the rerun to get a discount for the PRO account). It was really helpful.

Also, if I knew about BP before I bought my house I would have found a different house that would have allowed me to live for free PLUS have some "cash flow"/money that covers maintenance/repair.

Def bang out that credit card debt!! 2k--you got it! 

@Aisha M. I am currently house hacking. I think a duplex, tri, quad would be nice but I am actually house hacking in a single family home--aka, I have roommates, lol. I have 2 roommates in a 3 bed, 2 bath house. My roommates pay my mortgage for me, which is awesome. 
I bought my house with a FHA loan. I put 5% down. I went with a 15/15 ARM (first 15 years fixed rate at 4.5%, and then the last 15 years is adjustable by 2%...so the worst interest rate would be 6.5%) This option the (15/15 ARM) allowed me to bypass paying PMI (which is usually tacked on to your mortgage payment if you don't put 20% down). It was a really cool option i found with a local bank (L&N) here in KY.
I will probably refinance at/before 15 years if interest rates will be lower. 
Good Luck!