All Forum Posts by: Nicholas L.

@Mary Eubanks

stepping back for a second - how do you plan to source your BRRRR deal?

it's tougher to both purchase one and recoup all your cash if you use financing.

@Alex Kesner

just curious - why are you partnering at this stage?

what if you both house hacked separately?

@Eric V Harding

forgetting all cash vs. financing - i wanted to address 2 other items in your post

1st point - turnkey is not BRRRR

if you can't force substantial appreciation immediately, it may take many, many years to have enough equity to refinance cash out. turnkey is just about the opposite of BRRRR

2nd point - down payments for several properties - depends on your DTI and the loan type

ask one or more lenders

@Marcos Carbi I don't know if you mentioned this previously, but you're hoping to cash out refinance in 2-3 years to either lower your rate or pull cash out? This is not something you should count on being able to do - and many cash-out refinances have expensive fees associated with them. Your DSCR loan might also have a penalty associated with doing this in the first ~5 years.

@Marcos Carbi well, if you're not planning on living there, you're tying up a bunch of cash.  20% down + repairs + closing costs... seems like that's over $100K outlay here.  But only you can know if something fits your goals - if this property fits your goals, great.  One consideration is the velocity of your money.  I think that's what @Eric James is saying.

Specific recommendations if you move forward - screen tenants well, enforce the lease, and be sure the budget supports property management - you don't want to self-manage forever.

@Marcos Carbi OK - good breakdown.  So you're planning to self-manage?  I always recommend that even if you start that way, you budget for property management.  That's another 8-12% of gross rents.

Agree with Henry... don't.

If you're just starting out, house hack with conventional financing.

This exposes you to many aspects of investing while preserving many of the primary residence features.

@Jonathan Chang check the "The Rental Income Podcast with Dan Lane."  Very hands on interviews generally with small to medium size investors.

I only saw one person who seems to be a lender themselves - the rest of the responses (including mine) were informational

I was not soliciting

@Steven Gomez 

Can you be more specific as to what you're asking?  If you're asking about how to use passive losses to offset active income, that's a question for a tax professional as others said

If you're asking for input on where / how to invest - great!