All Forum Posts by: Kevin Wilson

Under contract on my first deal now what? BRRRR or Flip?

Here are the details; My intention was to BRRRR however I ended up with conventional financing and just wondering if it will still make sense due to closing costs?

Purchase Price: $45K SFR

Estimated Rehab: $30K

ARV: $120K

Cashflow after all expenses as well as setting funds aside for repairs, vacancy and cap-ex:

$275 per month

Given these numbers would I be better off Flipping? Or should I BRRRR possibly with a HELOC or a cash-out refi and just eat more closing costs?

Either way I’m excited to be under contract on my first investment and looking forward to learning the next few pieces!

Found a property that looked good cosmetically however contractor noted some structural concerns that could be pricey to remedy and had his own personal reservations about it as an investment property because of that. My question is if I could get an offer accepted lower than asking price to offset the repair costs would it be worth it assuming the math made sense for cashflow and ARV? Or is it too concerning and risks being a money pit?

@Trevor Jaworski I'm from California looking for my first BRRRR in Pittsburgh. Best of luck to you and I'm intrigued by the hard money route but a little unsure myself for a first property; we'll see what happens!

@Brian Josey Welcome! I'm pretty new to BP and REI as well. I live in California but working on finding my first property in Pittsburgh! Good luck to you!

@Matt Hilliard thanks for sharing! Good luck to you also!

@Matt Hilliard I’m a new investor also looking at Pittsburgh for my first property. Curious why your interested in the Pittsburgh market?

I’m guessing it’s kind of the same thing with a home where you have to remove clutter/items? If you can work the cost of doing so into the deal so it makes sense it may be worth it?

@Jordan Page @Michael Noto @Greg Scott @Anthony Gayden

Great feedback. I should add that this is a long distance deal and I don’t know if that changes anyone’s opinion other than I just may need to have more diligence in finding a good contractor and leaning on my Agent and PM. I don’t want to bite off more than I can chew but I also don’t want to keep spinning in circles with deals that don’t add up. Appreciate everyone’s advice!

@Michael Noto. Thanks!

I’m still looking for my first property and the ones I keep coming across that seem to make sense at face value all seem to be buy “as-is” or “buyer responsible for xyz” type homes. Is something I should consider but not deter me or should I steer clear of these types of properties completely?