All Forum Posts by: Mitchell Wyatt

@Dan Gamache where do you find a "fix n flip" loan?  I've only talked to a few banks so far but all of them have told me they can't include the cost of the rehab in the initial loan.

If I'm planning to BRRRR do I need to work with the same lender for my initial loan and the refinance? For anyone who is an expert on BRRRR please give me some insight into how you structure your financing.

@Travis Whiteaker I did run the numbers again and maybe I'm missing something here (apologies because I am new to this) but if I do this as a normal rental I can cash flow around $100 a month. It's when I do the refi that my cash flow drops to $60. This is to be expected I guess but maybe it only makes sense to keep as a rental if I don't BRRRR, otherwise it should be a flip.

@Jason Ridout, @Jacob Sampson great points. Thank you guys for the insight.

I think I've found a good deal on a single family home that needs a little work.  Here are the details:

Purchase Price: $35k

Rehab Budget: $12k

Estimated ARV: $65k

Monthly Rent: $650

Monthly Cash Flow: $60

I know we typically look for $100-$200 cash flow but with this being my first deal I'm willing to take a little less just to build up my confidence and get some momentum. If I keep it as a rental should I BRRRR to get back most of my initial investment? If I flip it, I'm worried that capital gains taxes will eat up to much of the profit. Is there a right answer to this or is it just a matter of personal investment preference?

Hey Kyle, thanks for the feedback!  House hacking is something I'm familiar with but not really an option for me at this time being married with two young kids.  Being able to add value to an existing property is a good idea.  I'll look around and talk with my agent to see what the options are.  Thanks again for the insight!

Hi all,

Looking to get into investing with a single family rental and build a portfolio over time.  My initial thought was to look locally but I live in a small community about an hour outside of Charlotte, NC where the average rents are $650-$750.  My means for financing would most likely be a traditional loan after 20% down but based on these numbers, I'm having a hard time seeing how any investment would be cash flow positive after all expenses (incl. mortgage, capex, vacancy, etc). I'm really new to all of this so maybe I'm missing something but I'm curious if anyone else typically invests in areas where the rents are fairly low and how they make those deals profitable.

As a follow up, I'm also open to looking out of state and I keep coming back to Roofstock.com as an option for that.  I've read mostly positive reviews online but has anyone here used that platform?  What are the pros and cons, and would you recommend it for first time investors?

Thanks in advance for any feedback and I'm looking forward to learning from this community and getting to know some other investors!