All Forum Posts by: Shain Cannon

@Bjorn Ahlblad

I would be inclined to agree.

@Erik Donough

Oof. Those numbers aren’t pretty haha. Seems I’d be better odd to sell and invest that equity elsewhere.

@Sherief Elbassuoni

This is great! Thank you.

@Erik Donough

And if I’m going to heloc the property to purchase the next property. Should I factor that in as well, or Juust expect to factor that into the next properties rent as I would refi the next property to pay off the heloc on the first.

@Erik Donough

Thank you for the reply. I did the calculator but was unsure how to use it my scenario. Would in just use the current mortgage as the purchase price? And omit the Rehab cost and what not since I did it in a more complicated manor?

@Theresa Harris

Yes the tenet would pay utilities. Now way I could even break even if they didn’t lol

Hello all. Still very green to this market and I’ve been listening to the BP podcast 6-8 hrs a day (at work) for the past couple weeks. So I am learning a lot! I would like some extra eyes to help run the numbers on turning my current owner occupied residence into a rental.

I’ll just give the whole backstory so we have all the information to make the most informed decision.

Everett Washington, about an 30 min north of Seattle, house is located about 5 minutes east of the Everett Boeing plant.

3 bed, one of which has a kitchenette, 2 bath, 3 car garage With an automotive lift, parking for 7-10 cars, RV parking and no HOA.

Original purchase price $300,000 Jan 2016

Payed down to $285,000(ish)

Cash out refi $322,000, invested $35,000 into rehab 2019

Arv refi 2020 to $330,000 (arv in today’s market $480,000-$500,000)

My current mortgage Payment is $1910.80. I am pretty sure property taxes and insurance are part of that payment as I don't pay an separate bills for tax or insurance. No PMI on the loan.

Typical rent for a comparable is $2600-$2700. I have a tenet lined up for $2700. No contracts have been started but the option is there.

Income would be $790

- 10% for vacancy $520

-10% for repairs $250

-10% for cap ex. -$20

NOI = -$20

Is this correct? It seems there are more factors if starting a BRRRR but minus The renter I seem to have model the BRRRR process without the proper numbers haha. It was never the intention just what's happened over the last 5 years. If my numbers are correct would I be better off just selling it in today's market? If I rent it the current plan is to get a heloc for the next BRRRR using the current house as the asset. Maybe that's a flawed plan too, again I'm learning.

Thank you!!

@John Barrett you are 100% correct about the W2 job and getting loans/mortgages. I don’t plan on quitting until I have 4-6k a month cash flow on the books through an llc. Again ambitious yes, but if I learn from everyone here and other resources we know it’s possible.

I am not doing this solely to get rich, I’m in it for lifestyle. I have a wife and 2 kids and with the W2 I work nights, and a side job after I get off leaving me no time for family or hardly relaxation. Not going to live This way for 40 year to collect a measly retirement.

@Will Fraser

Thanks! I plan on many more. So glad I could learn and not loose too much in the process. Well call it a “business expense” haha.

@Bill Hampton

Thank you for the resources!