All Forum Posts by: Nicholas Lohr

I currently live in San Francisco but have chosen for my first deal to go to Sacramento. (for obvious reasons)  

At the moment I'm in the 1st R (rehab) of the strategy but I'm curious if anyone knows about the tax implications of the 3rd R (refinance) part?  I'd definitely like to get my investment out (the down payment and the rehab cost) but do I have to factor in a big tax payment for that similar to what a seller of a property would experience? thanks!

@Jacob Asher Thanks for writing back. Yeah makes sense you'd need the rest of the numbers...

Current Interest rate is 4.875%

Current loan is 150,000

I put 50,000 down.

This just happened 2 months ago.

I paid 3000 in closing costs.

Vacancy rate is 3%.

I'm putting in new appliances with the 60000

@Chris Mason  It was a 30 year fixed to begin with.  My main goal is to get the 50k down payment out to use for something else. 

Quick question about the BRRRR strategy. I understand the strategy when you have a higher interest hard money loan and you want to refi into a 30 year fixed lower rate but can someone explain how it can work when you have a 30 year fixed from the start?

Specifically I bought a property for 200k and got a 30 year fixed, I'll put about 60k into it, and next year I think it'll appraise for 300k.

Can someone walk me through the numbers of how can I use the BRRRR strategy for this?

thanks!

Hi Steven,

I also live here in SF but I make the drive to Sacramento to invest.  Highly recommend it for cash flow compared to anywhere in or near the Bay Area.  Less than a 2 hours drive, not bad. Also the prices are MUCH lower so I feel like the pressure to not make a mistake is much lower. 

Looking to buy my third property out there soon. 

Also been investing in stocks myself for a much longer time compared to real estate.  So far it feels like this: With stocks you're putting your faith in them, with real estate you're putting your faith in yourself.  I like that.

Check out Sacramento. Less than a 2 hour drive from SF and the barrier to entry (a.k.a. price) is much more approachable for someone starting in the business compared to the Bay Area or along the coast of CA.

I just bought 2 houses in Sacramento and they need work. I am planning on starting the work this summer but I just got a notice from Liberty Mutual that they are canceling the policy because of the condition of the properties.  They didn't care that I am going to be fixing them.  Does anyone have a recommendation of an Insurance company that will insure them?  The mortgage company said if I don't find one myself they will find "lender's insurance" for me but I have a feeling if I go that route it will be more expensive. Anyone have any experience with this?

It's no secret that both of these things are a waste of time and money. Or actually is it a secret? I've been in this BP community long enough now that I feel like it's no secret.  Perhaps I'm just too used to living and learning within this enlightened BP "tribe."  I wonder if it is still a secret to the rest of the prospective real estate world? Also I wonder what percentage of the entire real estate world is now apart of this community? 10%? 20%? 1%? less?

Hi Alex I'm here in Sac and just bought 2 SFR's on one lot for 205k. Message me directly, we'll chat...