All Forum Posts by: Aaron Z.
Aaron Z. has started 4 posts and replied 82 times.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @Erik Kubec:
Here is the potential wealth destroyer:
By definition, BRRR can only really work in an environment where prices go up. Let's say I bought a house for $90k 5 years ago and it is worth $180k today. I take out as much equity the bank lets me, and I buy another house. Essentially, I have just agreed to pay twice as much for the first house. The value of having gotten in when the getting was good is gone. The cash flow decreases on the first. The second property is also bought at a higher price. If you do this every year and always max out leverage, you increase the number chances that one of those years could be the start of a down year or trend of years.
You are making me think about this differently. I always considered that I'd only be able to pull out up to 75% LTV max on appraisal for a BRRR, leaving 25% equity in each property which I don't consider to be super risky long term.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @Saberian Younger:
Originally posted by @Aaron Z.:
Originally posted by @Saberian Younger:
@Aaron Z. I think one overlooked point in this thread is that when using the BRRR technique you can use porfolio lending. Which is commercial lending by definition and it's not near as dependent on your own personal income but more so how much the property cash flows and your experience as an investor. I've spent the last 5 years getting into conventional loans of eight or so properties. It was a huge undertaking and a constant flow of information. I've currently been qualified for two portfolio loans and it's not even comparable. Now, I'm not saying you don't need income but the requirements should be less.
Also, as long as your rents have been on your taxes for two years I believe it counts as 100% income. I'm headed in a very similar direction as you with the BRRR, I'm so glad I got all of the conventional lending out of the way though.. I'm in the same position as you with the full time job and would love to stop working but I'm gonna try and hang on as long as I can. I do like my current job. Anyways, good luck brother.
Wow I just discovered the "quote" feature on here...this is much more user friendly than the app on my phone!
This is a great point and definitely one I hadn't considered. Thank you! I've done some prior research on portfolio loans but I hadn't really dug into them since I knew the terms usually weren't as favorable, plus I still have some fannie/freddie loans available to me.
At this is exact moment I "hope" I'm using the quote feature correctly ahaha! I researched what feels like all of the portfolio loans in my area and I've found that most offer 15/20 year arm type products but the one I'm really exvited about is through RBFCU, a local credit union, where they do portfolio loans at 15 years fixed for 4%. My thought is that It's a shorter loan period but so what I'm happy to pay 50% as long as it cash flows appropriately for my goals. I still have I think two Fannie/Freddie's available to me but the requirements are so redicuolously high. 25% SFR 30 % MF with 6 month liquids or something close to that. But yes I feel exactly as you do about the Fannie/Freddie's. I've dedicated the last seven years of my life having a constant paper flow so that I could get in while interest rates are so low. It was exhausting though...
Yep that worked just fine!
That product sounds great to me as well, thanks for pointing that out...it's nice to have a reference point. Historically that is an awesome rate even for conventional financing! Yeah I'm with you on taking advantage of the low rates and staying on my toes with the paperwork for financing and refinancing.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Post: Clayton Morris Might Actually Change My Life

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Post: Clayton Morris Might Actually Change My Life

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @Jay Hinrichs:
@Derrick Dill my client in in Indy that is doing turn key puts NEW metal roofs with 40 year lifes and 15 year unlimited warrenties on all his homes... saves tenants 20 to 40% a month on utls bills its brilliant.... Spartan in B ham does this ... as well
I don't know why this hasn't become standard practice. There are so many benefits to a metal roof! and they aren't the old tin roofs from little house on the prairie anymore...
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
@G Pyros ...oh I have begun throttling back... : )
Post: Building a SFR and making it tenant proof?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @G Pyros:
I always thought of this, however, i compare it to the hotel industry builds. Look at hotel bathrooms, very minimum with the vanity designs and tile up 6" on the walls. I feel a lot of design details can be taken from this industry.
That is a good point. I spend a decent amount traveling for my job but I've never looked to hard at how they plan for minimizing wear and tear on their property. Thanks.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @G Pyros:
I think the phrase you guys are looking for is "Moving the needle" if you are doing the BRRRR and at the end of the strategy you aren't tying up much capital but yet getting a 20% return on the little capital that is involved. This is a reason why the big players in wall street have a hard time getting into the SFH rental market. You can't not deploy a lot of capital quickly enough.
You simply need another vehicle to invest in. Or keep the cash cushion for a large downturn, nobody ever went broke with a large cash pile!
That's a good way to phrase it. I like the idea of continuing down my preferred path of investing at a 70% LTV with high cashflow rates and continuing this strategy after retirement by utilizing flips.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @Chinmay J.:
@Aaron Z. - If all you need is another 30K in income to retire, have you considered your hand at flipping? Even if you make modest $15K profit by flipping one property, all you need is to flip two properties and you are good.
This is another great idea and I guess this is another thing I didn't convey very well in my initial post. I generically look at the BRRR method as giving you the flip as a possible exit strategy as well so I haven't previously mentioned it separately...but I definitely would consider flipping to up my income in retirement and to provide new capitol that I could use to continue my current preferred buy and hold method. This is great, thanks Chinmay J for really pulling that to the surface for me.
Post: 18 month plan to quit my job. What do you think?

- Investor
- Virginia Beach, VA
- Posts 83
- Votes 34
Originally posted by @Saberian Younger:
@Aaron Z. I think one overlooked point in this thread is that when using the BRRR technique you can use porfolio lending. Which is commercial lending by definition and it's not near as dependent on your own personal income but more so how much the property cash flows and your experience as an investor. I've spent the last 5 years getting into conventional loans of eight or so properties. It was a huge undertaking and a constant flow of information. I've currently been qualified for two portfolio loans and it's not even comparable. Now, I'm not saying you don't need income but the requirements should be less.
Also, as long as your rents have been on your taxes for two years I believe it counts as 100% income. I'm headed in a very similar direction as you with the BRRR, I'm so glad I got all of the conventional lending out of the way though.. I'm in the same position as you with the full time job and would love to stop working but I'm gonna try and hang on as long as I can. I do like my current job. Anyways, good luck brother.
Wow I just discovered the "quote" feature on here...this is much more user friendly than the app on my phone!
This is a great point and definitely one I hadn't considered. Thank you! I've done some prior research on portfolio loans but I hadn't really dug into them since I knew the terms usually weren't as favorable, plus I still have some fannie/freddie loans available to me.