All Forum Posts by: Pat Dansdill

Hello all,

I would like to use the BRRRR strategy on a property, but don't fully understand the details-any help is appreciated!

1-Am I wrong in assuming you can buy a physically distressed property with only the down payment in cash, and then finance the rest with a lender?

2-Following the above scenario: If you are able to finance the remaining amount with a lender, and then refinance the property after you rehab/rent it out, there lies the possibility of losing on interest points, right?

For example-if I bought a property today, with a down payment, and financed the rest with a 5% interest rate, then refinanced in 6 months (after I rehabbed, rented it out, and it was appraised for a higher amount) when the interest has been potentially raised to 5.25%, I lose out on a lot of money with the higher interest rates...correct?

I'm not sure if there's more I need to learn, or if that is simply part of what happens in a BRRRR deal, and it's better than the alternative of doing nothing.

Thanks,
Pat Dansdill

Thanks guys-

I'm looking to invest somewhere in the western suburbs, but if the deal is right, anywhere in Chicagoland.

Thanks!

Hello,

My name is Pat Dansdill and I am looking to invest in multifamily properties around Chicagoland. I've been dragging my feet searching for places myself for about a year and a half, and am finally realizing that the next steps are to find a realtor and lender. Does anyone have any recommendations for realtors or lenders? I haven't invested before and am looking to invest in my first deal, probably a small multifamily because it is my first deal.

Thanks,

Pat Dansdill

Thanks Jeffrey-

That's a great point. I need to have a deal or two under my belt before that one works out. 

Though, so I know I'm doing my numbers correctly-do those numbers pan out for a decent investment?

Thanks,

Pat

I found a deal in the midwest. I think it's a great multifamily investment, but never having bought a property, I'm not completely sure.

In short.

Units: 190

NOI: $485,109

Cost: $5,800,000

Down Payment: 1,450,000 (25%)

Debt: $4,350,000 (75%)

Cap Rate: 8.4%

DCR: 1.75

Loan to Value: 75%

It's located about 25 miles to a decently large city. I don't love the area, but it has about a 95% historical occupancy. Let me know if additional info is needed.

Thanks,
Pat