I can give you an example of why the BRRR method is very challenging in this environment. 4 unit property bought in distress (2 units not paying rent) for $206k, ARV in the $325k range 3 months and $35k later we have 2 units rehabbed out of the 4, and 3 total units now rented, 4th will be rented within the next few weeks. 

Still investing 15 years later.

That 15.7% on our net note equity, but 22.7% on the “forgone” capital.About $6500 monthly is in cash, another $2000 is amortization of the u dearly I g note.It’s now two years later.

Later on, we could potentially use the other FHA loan to expand and start building a portfolio.I’d really appreciate any feedback or advice from people who have been in a similar situation, especially when it comes to financing, working with family, or house hacking as a first step.

You can always tackle the upgrades later once cash flow and equity improve.

If no then purchase under your own name.If you find a lender that will provide you with a DSCR loan in an LLC - then refinace to the LLC later.  

Househack is almost always the best way to get started in my opinion.Me and my wife did this ourselves and that property now cashflows almost 2k a month just a few years later now that we have moved out.I am a lender licensed in Idaho and specialize in househacking, happy to be a resource.

Hey everyone,I’m comparing two 3-unit properties in Chicago and could use some insight from local investors.Option 1 – South Side (near Woodlawn area):Priced around $830KModern finishes, newer construction styleCurrent rents around $2,195, $2,000, and $2,000The area has a lot of new developments and new 3-flats going upMy concern: with so many new buildings being added, there’s likely going to be more rental competition, and property taxes may jump once reassessments catch up to all the new construction.Option 2 – Pilsen area:Priced around $735KAlso modern updates but smaller units (two 2-beds and one 3-bed)Taxes are currently low, but likely because the property hasn’t been reassessed since the recent renovationsThe area feels more established, with strong tenant demand and characterSo I’m weighing the growth potential and higher risk in the newer South Side market versus the more stable rents and potentially upcoming tax adjustments in Pilsen.Would you lean toward the newer-construction area with possible tax jumps but longer-term appreciation upside, or the lower-tax, established neighborhood that might get hit with reassessment later?

Any Utah investors here successfully refinanced or assigned CFDs later down the line?

Basically, I'm trading $300-$500 per month for this benefit.But, lenders want interest first, principle later.