All Forum Posts by: Kaitlyn Aragon

Hey Kaitlyn, Welcome to the world of Real Estate Investing. We remodel homes just south of Charlotte in Chester, SC and practice the BRRRR strategy. Closing on investment properties can become addicting. The more you do it, the more you want to do it again and again.

I attribute the majority of my success and motivation to the knowledge I have acquired. While getting on BP is a great place to network and receive feedback as well as learn, I think educating yourself is a great base before getting started.

If you are interested using the BRRRR strategy and haven't gone through the book already, I'd highly recommend listening to on Audible or reading the hardcopy of the book.

BRRRR on Amazon

BRRRR on Audible (1st and 2nd download w/ audible are free I believe)

These are great questions, we help newbies overcome analysis paralysis by letting them examine one deal at a time with all the data they need to make a pass or pull the trigger. The only way to learn to swim sometimes is to just jump on the water

@J Newman

it's not 2016 anymore, unfortunately so analyzing on-market deals is not going to get you anywhere.

the best BRRRR deals are generally off market, and involve very tough rehabs.

BRRRR is also not a cash flow strategy right now - it's an equity strategy. if done right, you end up with a break even property, and a good amount of equity.

@Kaitlyn Aragon

i like what @Michael Dumler said.

unfortunately BRRRR is very difficult right now. and let's be very clear: a successful BRRRR gets you a big equity boost. but it is not a passive income generator.  you will likely break even, especially if you refinance into a DSCR loan with a higher interest rate.

i just did a rehab i hoped would be a BRRRR but it wasn't going to appraise OR cash flow! so i had to sell it. great project and i am proud of the rehab that was done. but it wasn't a BRRRR - the market was unforgiving.

@Kaitlyn Aragon, tl;dr others responses. Given your position, I'm going to steer you in a different direction. House hack your first deal before tackling a BRRRR or flip. Just my opinion. Connect with an agent who has house hacked before or regularly works with house hackers. You can either find an agent on BP or most likely at your local investment meet-up. Get pre-approved. Start making offers. Close on the deal. If you're currently renting, then going this route makes even more sense. Good luck!

 Hey Kaitlyn. 

Welcome. I know exactly what you mean as far as putting yourself out there. From what you've said, you have all the resources you need to get started from my opinion. You have to start somewhere. I came across a quote, "If you've never made a mistake, then you've never tried anything new." I think that was Albert E that made that quote. As we take action, we learn what to do and not to do. Things will start to make more sense. We can have all the knowledge in the world but know nothing if we haven't experienced it. 

I'm also new to and it's taken me a while to get the this point. I get nervous when it comes to meeting new people. Doing things that are unknown is natural. That's the "fun part." That's creating room for you to grow. If you're not learning and taking action, then your not growing. 

Anyways, I was just providing words of encouragement. I wish you success in your business. :) 

My opinion

BRRRR can be risky if it is your first deal.
I think a house-hack would likely be the better / safer approach.

With $40,000, you can potentially buy a $500,000 house assuming you put $25,000 towards the 5% down payment, $5,000 is used towards closing costs and $10,000 as a reserve just incase something needs to be fixed up.

@Kaitlyn Aragon

I'd start by setting aside time each day to analyze 5 deals in your chosen market. See if the BRRR would work based on current rental rates (ideally last 90 days but no more than 6 months out) and what similar fixed properties are selling for. At the same time I'd talk with a few lenders and get prequalified - get your documents in order! AND probably most important, talk with an investor-friendly real estate agent - learn the market, get property management recommendations and look at facebook groups for other investors in your chosen market.

@Kaitlyn Aragon

A BRRRR is a great way to start. I brrrrd my first property in Jacksonville FL. I used hard money and about 40k of my own money for downpayment and part of the rehab. I left about 20k in the deal.

It wasn't a homerun. It was a base hit. It allowed me to establish relationships with contractors and agents in the area. 

From there I saved up for another one. After a couple reps, I had the confidence to raise money and bring in investors. 

Dont worry about perfect brrrs and massive ROIs. That comes with more experience