All Forum Posts by: Scott L.

Anyone every buy apartments in an existing building for buy and hold rentals?

Not looking at the whole apartment building.

There is a nice little off shoot of the city, has 3 units, all for sale about 30K each, and rent in the area for a one bed is about 700-850. It has a HOA of 305 that seems to cover all maintenance of the unit and taxes and water and heat and garbage and cable. Seems like an 'ok' investment.

not sure how to run the numbers on this type of investment.

I wouldn't be putting anything in my children's name as far as real estate is concerned.

I just feel like i should go big or go home since i have a nice chunk of change saved up this time.  When i purchased my duplex I had about 18K saves up and used 16k.  WIth 30-40k i want to make sure i am leveraging correctly.

Good info...

ok.  The Tibet example helped. haha.

I got it now.  I was looking at this all wrong and thinking these folks were all getting home equity loans to accomplish this.  

BRRRR is a great concept now that I really understand it. My next question is, around we talking 3-4K in closing costs for a refi as well?

ok.  So they may get their money back out, but the mortgage payment will be higher.  Understood there.

But is the 'money back' in the form or cash out at closing?

Please excuse my ignorance in this post, but I listen to podcast after podcast on my drive to work.

This morning I was listening to Bigger Pockets Podcast 210, about a younger couple starting out, purchased their first property a 4 plex and are house hacking.

The purchased it for like 400K, but down 45K and were cash flowing like 1K a month.

This is my question:  The guy on there said they then refinanced the mortgage 10 months after they bought the property and took out 50K, basically getting everything back that they put in it.  

I don't understand. People say that on the podcast none stop and I think its the theory around BRRR? But I don't get it? Aren't you then paying another loan on the amount you "take back out."

And if you use that money on something else isn't that just money you are paying an additional fee for?  I'm really confused about how all these people "get their money back out"

Jeanni thank you.

Chris,

Yeah I like you thoughts. option 1 is where my mind has been, just because it is what i know, and what i have been doing. But option 2 interests me, it just involves a lot more time and commitment. I have this money, and want to invest in something for my future, not to create another job for myself just to receive 5 yr ROI. Buy and hold is my mentality, cause i want to build net worth and build for future bigger investments and bigger strategies down the line.

@Max What did you end up doing?  What did you target with that cash and where did you grow?

I have a realtor i work with, but certainly open to new conversations and ideas.