All Forum Posts by: Lee Haenschen

Still holding onto this dead weight question for the last year. Me nor my wife has made the jump to get started because we just can't get over a few humps. Sad that we've let more then a year pass by since we started taking interest in this new opportunity. 

If we keep doing the BRRR method on each house we virtually erase ANY cash flow from the rental. We need cash flow just like anyone else, this isn't just for the future but to live off as a second form of income right here right now.

Curt your method makes some good sense. I'm new to investing and was wondering how in the world some new people we are following through BP & local investment meetups are moving so fast with purchasing homes. Several have been buying 10-15 homes per year.....me and my wife were thinking to our selves "that's gotta be 250K in down payment cash WOW!!" 

could you elaborate on your 143% rule?. 

Thanks for clearing that up for me Brent

Kathleen could you give an example of cash flow in your area V.S. where you do invest? How far away from where you live do you invest?

How much money are some of you getting out of your cash out refi as an example? 

If I buy a house for 100K and put 20% down. With another 10K going into renovations of a credit card.

After a year of seasoning the house is worth $125,000 & I refinance and take out the equity. After repaying the credit card for the renovations I wouldn't have enough money for 20% down on the next 100K house. 

I tend to do a lot more reading on this forum then posting. But from what I see I think the rental rates are quite a bit lower in our area then other places in this country. 

I live about 10 miles outside the outskirts of Charlotte NC. Not a small city at all but from the sale prices I've read on the forums V.S. what they are getting for rent is crazy! 

First off I don't own any properties YET. I've been antsy but want to get all the education I can before jumping in. The homes that im looking to invest in are 50-125K. The rent for an average $100K house is $650-850. Some on here are getting $1,200-1,350 for a 100K house! 

From all the numbers me and my wife have been generating it looks like our average cash flow from a rental would be in the ballpark of $80-200 tops. It is going to take us quite a few homes to get the $4,500 we need per month for her to quit her job. As depressing as that might be it is only lighting a deeper fire under my butt to get out and find better properties. My wife was reading that some on here are cash flowing over 1K per month on a SFH and wanted to know how this is possible? I told her that more then likely is not possible for our market and that we need to concentrate on which side of town we will invest in to get the best return.

We live in a rural area where rent is even cheaper, I'm considering concentrating our efforts closer to the city limits to keep rental rates up. 

On to my question. What tends to be a good driver of rental rates in everyone's market?  We have several colleges, large national factories, speedways, concert arenas, government agencies and all that any other large city would have. But what keeps our rental rates lower then what I'm finding elsewhere? 

might have to check this out! 

If you do a cash out refi don't you pay % in interest on the cash you get back out of the refi? So your getting your own money back, but having to pay interest on it? 

Another question about financing investment properties. 

I've heard in a few of BP podcasts that many people refinance their rentals after a year and take the equity out to use for a down payment on the next rental property. How does this work? From my understanding any heloc or home equity loan, you have to make interest payments correct? Wouldn't this effect your cash flow? Paying 4-10% on a mortgage + a few extra % on the heloc.....am I understanding this correctly?