All Forum Posts by: Account Closed

Bill Hamilton Seems like many variables are a good thing in refinancing using the brrrr. More options to choose from when everything is in order for someone Who purchase a good deal home at a high market area, but we still are limited here in comparison to low markets.

Shaun Weeks thank you, great answers and I notice your a loan officer, I would definitely go to a broker for when the time comes.

I have questions about refinance while using the brrrr strategy. Once your getting ready to refinance, what kind of loan would you get? For example let's say I purchase a property for $300k and its value for $450k (this price is normal here in the NYC market) then I rehab, rented and now I want to refinance and I paid that property in cash, so there is no mortgage on it. Doesn't refinance mean replacing your old mortgage with a new better interest rate mortgage? But how do you replace a mortgage on a property that doesn't have a mortgage? What kind of refinance would it be? From what I see, you could only take out an equity loan or equity line of credit or cash out equity finance on properties without mortgage. And to even qualify for any refinance loan, wouldn't you need to keep your full time W2 job for 2-3 years? Because those banks require personal income and income tax returns. Again this is NYC I am speaking of so trying to refinance a $300K home that's value at $450k, wouldn't you need a $70k per year job for at least 2 years on your income tax for banks to even consider refinance? This is the only road block for trying to use the BRRRR strategy in NYC or other high market cities that I Seen. Please correct me if I'm wrong and share any advice that can help me and other people in high market cities understand in using refinancing while brrrr.

@Will Barnard Congrats on evicting those bad people out, in the end you did profit and i hope this experience made you a better investor. I live in NYC and  both LA and NYC are a tenants favor city in which here would have probably taken the same time frame. I learn from reading your post to never buy a property with tenants/occupants living there because being a military veteran i have no patients.

@Larry Turowski as a first flip to not lose On top of all the rookie mistakes I was making was a success, I call this boot camp lol. I have a rental property that I took a HELOC and bunch of promotional credit card to finance this project. Has for materials, Home Depot and lowes helped a lot with no interested for 2 years on 60K credit limit and 10% off for military veteran like myself. The Reno cost was another rookie mistake, I did a high end $105k renovation in a middle class neighborhood thinking my house value would sky rocket but once the appraisal came in, it wasn't what I expected. I could had put in $70k of middle end work and still had the same appraisal results due to the market value in the area, I am speaking of NYC queens area and I don't know how other areas work but here it's pretty challenging. But on positive note, with that high end renovation I had no shortage of offers.

@Abel Curiel thank you and yes it Was a close one. My business is part time now as I want to dedicate more time to RE flipping. The work I do is everything from inside to outside to building a new construction anywhere in queens NY area only. 

Rich Ng thank you

@Rick Wang yes I do, I will send you a message with all the info, NYC is a big money market and competitive, we just need some edge to beat out the rest, mines was being a contractor and sometimes that doesn't matter.

@Rick Wang the Auction here in Queens NY was great. There were 15 properties and about 200 people at the court house wanting to grab a deal. The property I purchase was 3rd on the list so I though I was going to get a deal but then I realize I was bidding against a person who actually wanted the property as a resident. It's tough to win against someone who is not an investor because they don't have limits. I do recommend auctions as resort of buying deals for a small profit margin, there's no home run deals as I saw many properties being over bid. Closing cost was very cheap at $1K, I had used Heloc from another home so it was all cash. 

@John Thedford that was actually my goal to get out of this at breaking even, that extra $10K was luck and enough to pay Uncle Sam if I don't use the 1031 exchange. $50K lost would had taken my motivation away.