All Forum Posts by: Kevin Diesel

@Todd Rasmussen

Hey Todd, so it’s an investment property , a single family home that I bought back in august and right now I’m renting it out for $950 a month.

@Kyle J.

Sorry , I should have made that clear. It’s an investment property. ‘My first one actually that I bought back in August.

Hello! I was wondering if raising the rent would help getting a better appraisal value when times comes to cash out / refi your investment property.

If I was to charge $200/month more, would it make any difference?

Thank you

@Brandon Sturgill

No worries! Thank you for your response.

Yes, I’m using cash to buy and given that I don’t have a steady income at the moment, I think that trying to find a few good deals to flip is the best way.

Rentals are great but you would need 40-50 units to pay you bills and live off. Until then you would need a day job.

I get the rental advice a lot even thought I do mention that my income in not stable at the moment. So I guess taking advantage of that 100k and doing some flips makes more sense to me.

Please correct me if I’m wrong since I’m just stating now. I bought my first place last August and I will be refinancing next month. Tenants should be out by June when I am planning on doing a rehab and list it.

Thank you!

@Jody Sperling

Yep, don’t get me wrong. I’m not looking to just lay down 24/7 and money come rolling in.

What I mean I guess is , how can I make this my main job with the money I have saved up and not going to another 9-5 job.

From what I see, rentals is obviously a long term solution. I would need at least 40-50 units generating $100-$200 each to make a living and not have to work anywhere else.

But if I wanted to make money from real estate properties now, flipping would be the best way I guess. I would think if one avoids big mistakes and loses, with a few flips a year you could make well over 100k, live off of that while keep doing the same and slowly throwing in a couple of rentals properties between those flips.

Im passionate about real estate and ideally would like that to be my main job by using what I have saved up and turning it into more $.

@Aaron H.

Yep! Makes sense. I keep hearing that no lender does 100% cash out refi. But even if the did, would it be smart to do a full 100% cash out refi instead of 80%? I would think 100% cash out refi would come with higher interest rate and monthly payment. And a higher monthly payment would mean that the rent you collect may be just enough to cover your mortgage or even worse, less than your mortgage amount.

So why would anyone go with 100% cash out refi if it’s available? Would they do this to use the extra cash to live of them, or put it towards a new investment property? Would that be smart to do?

Lastly, if it possible that one could make a living by following the BRRR strategy while not having a regular job? If majority of properties can bring $100-$200 per door then you would need 50+ units. Correct?

Thanks again!

@Peter Mckernan

Thanks Peter! Yes it’s a littler right when you want to do this but don’t have taxable income for sure!

I do some freelance software development so I get buy. My overall expenses per month don’t go over $2,500, including rent. I’m just trying to see which way would benefit me best and which one would be the fastest to accumulate more capital in order to live more comfortably and to reinvest. And flipping seems to be the way at least for now, but let me know what you think.

@Jody Sperling

Thank you for your response!

So let’s say I buy something and fix it, all for a total of 90k with 50k being hard money lender.

After rehabs it’s worth 140k, I do a cash out refi and that way I pay off the had money lender and take back what I put in. So now my monthly payment for the mortgage is $900 and I rent it out for $1100. That’s $200 cash flow ( unless more repairs come up along the way).

I could repeat this and try to get another good deal to get the same result using the same funds but and slowly get up to 400-600-800 bucks of cash flow in 2021 if I do it 3 times.

But if I wanted to make a good return doing this and not having to look for a 9 to 5 job, would it make more sense finding the properties and flipping them? Or do people just do cash out refis for the max amount possible, use half for reinvest and half to pay their bills ? Because that to me sounds like a huge risk . Higher interest , higher mortgage payment that could wipe out the cash flow from rent and out you in a negative cash flow situation.

So I guess in my mind flipping is the way to go if you have some money to invest but no 9-5 job at the moment. You would be making house flipping your job.

Let me know if I’m wrong and where. And thank you again for your input !

Hey guys!

I would like to get an idea on how to go about starting up in the real state investment world with 100k in savings but no job/taxable income at the moment thanks for the amazing 2020.

Any ideas are greatly appreciated!

Thank you in advance!

@Brandon Sturgill

Hey Brandon, I have a question for you and seems you could help.

I was reading "the book on rental properties investment " by B. Turner on how to make 100k a year with BRRR. But it seems that this only works after the 5th year.

The book for example says that you buy a house for 70k , add 30k in renovations, rent it out, refi it up to 70% and make you money back. But after refi the value should be higher

A lender refis up to 70%-80% when you hit the 6 month mark, but they could refi 100% after a year, is that correct?

So if I bought two homes for the same amount mentioned above , and after rehab the value has gone up to 150k for each , wouldn’t I be able to refi both a year later and take out 100k in equity if I wanted to? What would be the pros and cons of such way of doing it ?

Thank you in advance!