All Forum Posts by: Sean Julian

I close on my first BRRRR in a couple of weeks and it's in South Bend. I have a great realtor, a contractor, and property manager. What I'm lacking is the "refi" part. If the loan was going to be over $100K no problem. But, the house I found won't even hit the $100K mark let alone the loan amount being $100K. I did find someone that will refi after 6 months if the house price appreciates and will do a loan for $50,000.

Does anyone have a solution for this low house value part of the BRRRR to make refi happen sooner than 6 months? I almost feel like this market is better for low end flips or buy and hold with no cash back like the BRRRR gets you. Thoughts?

I am doing my first BRRRR. I could use some backup if anyone has time. I close on the property on July 10. I want a plan ready to execute on July 10.

choice one: get the place rent ready

$42,000 purchase

$10,000 work

Refi not possible due to house value only $60000 and minimum loan I've found is $50000 meaning a $67000 ARV

$4800/yr net Cashflow

CoC 9%

Choice two: get the place refi ready

$42000 purchase

$25000 work

ARV $75000

Refi 75% give me $56250 back or $10750 cash used

$1800/yr net Cashflow

CoC 16%

Paying the extra $15000 nets us and extra 7% CoC

Thanks for the backup

@Nazakat Hossain I’m in Houston with the same issues. I’m making some headway in Indiana. The numbers are better there.

@Kelly Claiborne

I've had two require way more work then advertised. I'm looking, have the pre approval letter, have the down payment, but I'm always 2 steps behind the rest of the investors. There are a few I could probably buy that don't make the 10% ROI but I don't think doing my first deal just to do it is the right answer.

Great question!

I keep getting told “I wouldn’t own there and we don’t manage there.” Is South Bend really that bad? 😳

Thank you!

May I please have her info too?  Thank you!

Thanks all. Glad to know that seeing the property is a win!

Just did a virtual walkthrough on another property and I guessed the rehab cost within $1000. Maybe if I finally find my first deal it won’t be so bad!