This is how i BRRRR. Tell me what i can improve on. - dropbox link to all my financials. all categorized - 80/20 loan to value. 20% downpayment, 80% financing. same ratio when refinancing - no tenant seasoning, refi immediately with lease in hand - showings to potential tenants during renovations, so once finished tenant moves in. - no minimum limit to financing. The lender i have will finance a 80k home. Average home here is 320k anything i can improve on?
Thanks very much for the detailed video. I'm starting to build my portfolio, along with the 2 family that I bought (and lived in) 20+ years ago back when I bought my Carlton Sheets videos :). I like that you've pointed out some "rule of thumbs". I really struggle with the notion that a $200/month profit is a "good" number for the work of being a landlord. It seems that you need so many properties to replace your income, especially if you have a decent gig. If you're focusing on multi-families, are their any rule of thumbs based on how much profit each unit should make or even the value of each unit? What about the notion of being debt free with your properties? Is that a myth?
I usually use $200-$250 per month per unit in cashflow for multi-fam as my guide. Keep in mind, over time your cashflow should grow (rents grow at same rate as expenses but rents are higher than expenses, so cashflow increases), while mortgage payment stays the same. As for debt free properties, I like the idea but your rate of return on your equity is usually pretty low vs. having the properties leveraged. If you're trying to grow, you'll want leverage
I understand how the lender will be paid off and how there is a $4454 profit in this scenario, but can you explain how much money is able to be pulled out to use for the next deal?
If there is a profit, that means you're pulling out all your money originally in the deal. The profit is the amount over what's invested in the deal and pulled out
RehabValuator ...yes, I live in Austin and Airbnb is in high demand over here...there's tourists all year round especially for ACL and South by Southwest..
