All Forum Posts by: Michael Haas

Hey friends! Our first Investor & HouseHacker Real Estate Happy Hour of the year is this Thursday, 5:30pm at Fremont Brewing! $10 admission gets you beer, cider, kombucha, & soda on tap, dinner, awesome networking, and a panel about working with contractors from a seasoned GC, Builder, Architect, & Construction Lender. You won't want to miss this one, RSVP at the link below!
meetup.com/house-hack-seattle/events/299301555/

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $134,000

Contributors:
Jess Haas

Rental type: Off-Grid STR
Condition @ Purchase: Good
Strategy: STR then Sell (Headache property)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $682,500
Cash invested: $71,000

Contributors:
Jess Haas

Rental Type: SFH(3bd) + ADU(1) + DADU(2)
Condition @ Purchase: Moderate Fixer
Strategy: Reno + Hold

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $822,000
Cash invested: $300,000

Contributors:
Jess Haas

Rental Type: 3+ Units Moderate
Condition @ Purchase: Fixer
Strategy: Reno + HouseHack

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $435,000
Cash invested: $37,000

Contributors:
Jess Haas

Rental Type: SFH(3bd) + ADU(1)
Condition @ Purchase: Good
Strategy: Light Reno + Garage Conversion

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $601,000
Cash invested: $450,000

Contributors:
Jess Haas

Rental Type: SFH(4bd) + ADU(2)
Condition @ Purchase: Heavy Fixer
Strategy: Dormer Addition + ADU

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $552,000
Cash invested: $322,000

Contributors:
Jess Haas

Rental Type: Small House
Condition @ Purchase: DADU (2bedrooms)
Strategy: Condoize & Hold

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $389,000
Cash invested: $30,000

Contributors:
Jess Haas

Rent Type: Cash Only
Condition @ Purchase: Good
Strategy: Light Reno + Hold

@Ell Jay Lindsey you're not wrong, you're just trying to turn a screw with a hammer - wrong tool for your goals. BRRRR is all about building net worth & equity in properties that can serve you in future purchases - not about cashflow, at least not on day one. BRRRR into a break even deal or even a slightly negative cashflow deal, and get all your capital back for the next deal. Build your stack, and let time do its thing. Rents go up a heck of a lot more than expenses do.

As a quick illustration - my current "oldest" property is a 3 unit I purchased in North Beacon Hill in late 2016. After renovating it my gross rents were about $5,000 - now, 7 years later, they're over $7,000. BRRRR lets you recycle your capital and keep buying, but its TIME that brings you cashflow.

@Yesenia Charles if you don't plan to hold the beacon hill property forever you should usually sell it before your section 121 deduction expires. This can be a very large tax savings (typically $30,000 - $100,000 in my experience) and just doesn't make sense to let that expire, unless you truly never want to sell the property. 

I just did a Section 121 on one of my Seattle homes w/ $44k in tax savings, I just DM'ed you in case you want my thoughts on how it went. Cheers!