All Forum Posts by: Kevin Young

Can I BRRRR my own house? I just bought a new primary residence and am almost done rehabbing it. It was dated and all I did was cosmetic work. I put in 70k - brand new floors throughout, new kitchen, three new bathrooms, high end finishes. What's the upside of doing a cash out refi? What's the downside?

@Antony Charlie

Awesome man. Good luck.

@Antony Charlier

It’s going to cost you money via closing costs to do a refi. Say it costs you $5,000 to do the refi and the refi itself will save you $300 a month. Then it’s going to take you about 16 months to (5000 / 300 = 16.6) “break even”. After the break even is when you start benefiting from the refi in terms of total savings and not just more cash flow each month. Does that make sense?

@Antony Charlier

Make sure you know what the break even point is on the refi. It sounds good to be getting a lower interest rate and increasing your monthly cash flow but if you plan on selling in the near-ish future just make sure you know how long it will take to break even on the fees etc... of the refi.

Thinking about using my current residence as my first rental - I could cash flow roughly 700 a month. But the question is, should I sell it (I have 100k in equity in it) and buy rental properties with the profit instead?

How would I run the numbers to determine cash on cash returns if I do decide to rent it out?

Looking for some good recommendations for General Contractors in Salt Lake. Looking do to a kitchen, floors, dry wall, bathrooms etc...

When determining ARV, and even looking at comps - which factor plays the biggest role? Total square feet, price per square, # of rooms?

What areas of Phoenix have you found for best cash on cash returns with rentals?

@J Scott @Brian Beck

Thanks for the info guys. More background - I'm going in on a flip with a friend and we are doing all the work ourselves, both of us have done the work on our own personal homes. So we'll be buying any/and all material - more on the high end in terms of finishes. I'm trying to figure out how much more bang for our buck we'll be getting by doing the work ourselves and what that might mean as we try to figure out what the numbers.