He lives in Seattle Washington I think. Small houses there go for like 700k. This lot allows for 3 houses so that's a potential 2.1 million dollar development. That seems cheap to me. Building a new basic small house is usually under 200k no matter where you build it. So for like 1.1 or 1.2 million he could have 2 million dollars of houses, that's a great deal.
@@SinginRabbit The market is what the market is. You got to make that 5% off the property no matter how much the market is charging for it. Honestly I respect his willingness to put that kind of cash down. Property values where the land is worth twice as much as a fully developed house in most of the country is a gamble as to if it will keep the value going forward. I respect the confidence risking half a million dollars on the deal.
The math doesn’t seem to work. A loan at $1.3m at 8%, $9500. Once you add taxes and insurance, total monthly expense is over $11,000. There’s no cashflow. The equity of $1.2m is unlikely. Land and permit cost $560k. Construction will cost over $1m. You are all in $1.56m. To have a $1.2m equity, these three narrow houses will have to worth $2.76m (or $920k per house/ADU). I highly doubt it. Yes you make some equity but not $1.3m (maybe $500k to $700k profit). A profit of 100% from permit to selling/cashout refi.
Is it cash out of your pocket if you traded one of your other properties? 🧐 awsome investment! Great way to flip 1 property into 3 passive income properties!
Man, i'll rather do it myself lmao, thank god i know how to build a house all i need is my bestfriend, 2 pizzas and a 12 of coronas, that house will be done at the end of the month lmao
@Leonard Richards that's not at all true. I'm sure that zoning doesn't allow further subdivision or he'd be doing 3 separately transferable houses instead of 1 house and 2 accessory units on a single lot.
@@lightguy1 Can you do it in reverse ? For example. You own separate properties connected. Say for example. One house connected to 3 vacant lots that you own. Couldn't you combine the vacant into the same address as the property with the house ? In this case you pay One tax instead of 4 separate tax bills ?
@Leonard Richards every state/jurisdiction has different rules, but in my experience, generally yes, you could. But if you had, say, 3 lots and 2 of them had houses on them, then it would depend on the rules and how big the houses were.
this guy is a grifter this is what he is gonna charge you but honestly you can do this stuff much cheaper if you know a good construction manager who has a team of paisas
Brrrr typically refers to buying an already existing house, and rehabbing that to force equity growth, then refinance to get your down payment and renovation money back out. to pay yourself back or get another property. He will HAVE to refinance because construction loans have short terms (usually 12-18 months) then he can “refinance” into a conventional loan and pull the equity out (if there is any) otherwise he will just use the rent to pay the mortgage and hopefully cash flow extra adding to his passive income
@@tu-motherI'm familiar with the brrrr strategy, I was talking about build, rent, refi, and repeat. Sounded like at the end of the video he was about to say you know I'm going to brrr this. But you can brrr with builds not just run down houses. As long as you have enough equity
Why? He's providing housing in a really expensive area. The parasites' are the people who won't allow multi family housing here, so it cost a million dollars to own a house.
