All Forum Posts by: Nicholas L.

@Reagan Huefner can you really get the ARV up that high with just $15K in repairs? And can you really get $900 a month for it? Or are those just guesses?

@Sam Harover it's only enough if you have enough left for reserves and expenses after a down payment. You could potentially house hack with an FHA loan depending on your market.

@Jimmy Lieu one option would be to move there and rent while you check it out, get situated and look at properties in person.  If you can't find anything you like or it doesn't meet your expectations...you can move when your lease is up.  Nothing wrong with renting in the short term.

@Eli K. this will show up as debt on your credit until it is paid off or you are formally re-financed off of it.

@T Sanch this is a really interesting question and an interesting way to think about it. I think it's a bit apples and oranges though - if you're flipping, you might use higher end finishes or different features to generate interest. If you BRRR, you still want to get the ARV as high as you can, but you don't need it to be as high end.

So this might come down to your goals and your interests - and not just comparing numbers.

@Mat Poole you will get the best terms and rates as an owner occupant.  You just need your income to be able to support both mortgages as not every lender will count rental income as income until you have a history of it.  Call a couple lenders and get a couple of loan work-ups.

@Deb Wells

Higher interest rates. Might be hard to get a HML on your very first deal. Some (but not all) HMLs will only lend to LLCs. It may also be difficult to find a HML that will cover both the purchase and the rehab.

If you purchase with HM, you need to be sure you have traditional financing lined up that you can refinance into once the rehab is complete. 

@Michael C. it would make sense, but it's hard to believe it would only take $15K to get the ARV to $130. Is that based on legitimate comps?

@Deb Wells how much cash do you have?

@Simon Obas I looked at the listing, usually for a BRRR you want to be able to increase the ARV substantially and it's not clear to me that's possible with this house. Are you working with an agent?