All Forum Posts by: Matt Gooding

Just curious what made you want to invest in Augusta living in AZ?

As far as I understand it the BRRRR strategy is to do exactly that, build your portfolio. Done right you will end up with a cash flowing property (even after your mortgage is higher than it originally was) and will have your initial investment back in hand while still having an equity stake in the home and now it is cash flowing for you to go out and repeat the process and build wealth.

I think a lot of the the time the Buy is implied as "in cash" and then the refinance takes your cash back out so you actually go from having no mortgage to then having a mortgage but I a, sure you can do it either way. 

I am curious as also a new investor in the Augusta area as to what part of town you are investing in?

Cheers,

Matt Gooding

Just for curiosity's sake, im a new investor in the Augusta area. I would love to hear more about what part of town / the details on those deals. Sorry I dont have more advise to offer.

Cheers,

Matt Gooding

I am also a new investor in the Augusta area, in the process of closing on my first deal (4 units) now. Has anyone in this thread actually attended any meet ups with other investors? Looking to network with likeminded people the same as everyone else above it seems.

Fund an LLC? Seasoning? What am I missing here? I was under the impression I would pay my attorney a small fee to form an LLC and that would basically be that.

@Beau Fannon I actually am in the process of buying them now so I would create the LLC first then buy them in said LLC's name instead of having to transfer titles or something if that changes your answer.

I am buying my first rental properties very soon (4 rentals) and I am wondering on the communities opinions on whether or not I should form a LLC and hold the properties in that or if I should just hold them in my personal name.

What is the rule of thumb for accounting for vacancy? I have read different things, only account for 10 months of the year being rented? 11 months? 

Also from my understanding with these being ranch style town homes the opportunity for capex (I assume this was what you were referring to as maintenance?) expenses isn't quite as high as it would be in other real estate.

I should also clarify that my goal when approaching this deal is not to add monthly income to my budget. I plan on opening an entirely separate bank account that will explicitly run these units through. Should I reach the point where I have a standing 3-5k in that account to cover large capex expenses I would then use the extra cash flow per month to start paying off one of the units until I owned them all out right. I am totally open to losing money on these units in some years (short term) if large capex expenses occur in order to build long term wealth. 

The reason I am only putting 5k down is not because it is all I can afford but rather because the financing terms are so favorable with so little down. The properties (unless I am missing something major) still cash flow positive with so little down. I am viewing this as a very long term wealth building tool and not a way to increase my monthly income. 

@Caleb Heimsoth Thanks for your input though, please let me know if there is anything else I am unaware of with this being my first deal. 

Good to know. I know the roofs were 30 year roofs put on in 2003 so they should have some life on them. I know at least 2 of the 4 HVAC units have been replaced. I will be viewing them next week so if there is anything else I should be on the look out for please let me know. 

I am unsure what capex means, but there have been 2 that have sold in the past 2 years. They sold for 87.5 and 95. So right in the middle of that. They were built in 2003 and the person I am buying them from bought them brand new then and has owned them the whole time so I trust the condition fairly well (better than I think I would if I didn't know the seller which I guess is most cases).