All Forum Posts by: Nicholas L.

@Dustin Dummer I could do the math... but what are the purchase prices of each?  Are any of the units occupied?  How are you going to finance them?

@Natalie Siedschlag some properties that make the best BRRRs are in such poor condition that conventional financing is not available. You are correct that it's possible - but how would putting in just $8K get you such a big boost in the ARV?

@Jonah Walker nothing is going to change overnight after inauguration.  There's no reason to "wait" for something big in the market to shift - just keep looking for a good deal.

@Diana Fernandez the best way is cash. All the others can work - you'll just have to run the numbers to include the financing costs, interest, etc. Remember that to BRRR you need to account for the purchase price, closing costs, rehab costs, holding costs, leasing costs, refinance costs... it's a lot more than the summaries make it seem like.

@JC Oakley welcome.  Do you rent or own your primary?  Do you have any cash saved up?  Are there any markets you're particularly interested in?  

I hear what you're saying about being hands-off - but a good property manager can make that the case for you, regardless of whether you buy through a turn-key company.

@Silvia Bimblich house hack.

@Ana Kudlack got it - great additional info. There are lots of threads in the forums about reserves and savings - check them out and see what you think. One rule of thumb is 6 months PITI as reserves. In other words - if you have $20,001 in your bank account, don't spend $20,000 on a down payment. =) I agree with others in this thread that you don't necessarily need a home run, you just need a solid investment. And you're NOT behind!

@Beth Meurer save up some cash.

@Ana Kudlack do you have cash for a down payment, reserves, and savings?  You said you were "financially independent," but I think what you may have meant is that you have no debt.  But please correct me if I'm wrong.

Would you be open to looking in other markets / other states?

@Jess Kempf the nice thing about trying it as a rental is that, if you rent it for a year and it doesn't work out, you can always sell it then. It does seem like you should consider having more savings first, though - if you have a HELOC + a traditional mortgage to buy your next property, that's a lot of debt. How much additional / for how much longer would you need to save to buy a primary without having to take out a HELOC for the down payment?

You could always try for an FHA loan to reduce the amount of the down payment needed - but if you do that, you will be paying PMI.