All Forum Posts by: Mel Hayes

 I think I'm looking at it a lot differently.  If I pull out 100% of my investment + another 50% and I have zero dollars in the deal, whatever the cash flow is a maximum return.  No?  What am I missing? 

 Thank you for responding. So because the value has doubled and the rents have not kept pace it's no longer a good rental?  The tenant pays every month, very little maintenance, good area, but now its not a good rental because the value has raised?  I'm failing to see your POV.  I could COR for 50% of value and it would cash flow very well and I'd have all my money out of the deal.  If it cash flows at a COR of 50% of value does that make it a good rental? I'm not understanding how that works on a refi.

Hi all,

I'm looking at doing my first refi so I'm no expert. I know to the vets this may seem like a very simple question but I'm having an inner battle trying to figure out what path to take. A property that I purchased in all cash 3 years ago has since doubled in value according to the market. Although the value of the property has risen, the rental amounts have not risen at the same rates. If I COR for %75 of the value the property will cash flow about $100.00 which leaves very little room. I could take out less than 75% of the value and still do another deal but I could take the entire 75% and do maybe two deals and still have reserves. Any advice from you BRRRR experts would be greatly appreciated. It may be something I'm clearly missing. I'd ask my mom but she'd just tell me to pay off my student loans. LOL

Hi all, Can anyone recommend some local Memphis banks who work with Investors? I'm OOS and looking to build relationships with local banks. Thanks in advance.

@James Brown Ahhh ok... She's coming soon.

@James Brown He's applying as a single occupant but has a spouse? Confused.

 Sean, My advise would be to try and manage yourself before hiring a property manager.  The property manager is not going to do anything special that you can not do yourself except cost you more money. I have 3 properties that I am self-managing from out of state.  Property management is more about systems than it is location.  I hired a local lawyer to draft a lease, I have use preventative measures for repairs, and I have an agent for showing and turnover.  Property managers still need to be managed and nobody pays you for that.  You might as well pay yourself the 10% you would be paying them.

Best of luck.

@Brad Sand Thank you for the reply Brad. Yes, I meant to type quartz.

@Luke Trovinger Our intention is to rent and not to sell. My partner thinks finishes will impact our appraisal. If we decide to sell down the road, we will likely do a light remodel and could add the countertops then is my thinking.

I'm having an disagreement with my partner about our BRRRR project. We're discussing finishes and my partner wants to do quats countertops. Their reasoning is it will apraise higher. I want to do laminate because its a rental and I believe the countertops will have very little to with the appraisal.

Anyone have experience with this or have a strong opinion?

Thanks in advance.