Join Tarl Yarber, experienced real estate investor on a follow up episode to tour and analyze this BRRRR real estate investment property!
Пікірлер: 351
@biggerpockets4 жыл бұрын
What do you think about this BRRRR investment? Let us know below!
@jacethornton39234 жыл бұрын
I love the down to earth way tarl explains stuff. I love the Brrrr idea as well. Love the fact that you can make 28% on 20k
@EddieR1814 жыл бұрын
BiggerPockets this was a great video containing a lot of good information. Please consider adding more content like this. Maybe in Florida/Jacksonville area.
@BigBoss-qo7yx4 жыл бұрын
Do a video on the house design software
@ramtinmalek31654 жыл бұрын
I didn’t see that you had considered for any maintenance cost and any utility cost in your cashflow calculation. In best case, the property will do $250 cashflow. This property will make 8-12% cashflow which is great, but 28% is misleading and I don’t think it is true. Great content though!
@LifeCoach444 жыл бұрын
I love the transformation, but I am concerned about cashflow being calculated as rent above debt service. There are definitely going to be operating expenses that need to be accounted for.
@BensonGitau4 жыл бұрын
I love buying and holding instead of flipping. That was a great transformation. I love your work. I just got my first rental property and I made a video about it. I can’t wait to scale up. Thanks for the inspiration
@pj00173 жыл бұрын
Buying and holding is like buying a dividend stock instead of a growth stock that makes you a 30% return in a year 🤡 selling when you can and buying a new property with more cash in your pocket makes way more sense
@juanlee5764 Жыл бұрын
@@pj0017 it's called passive income
@IsaiahTucker99083 жыл бұрын
This video was OUTSTANDING!! He explained everything perfectly and when he used terminologies he explained what they were rather than expecting us to know. I LOVED how he went into detail on everything. Overall an outstanding video!!!
@ionisfoutaka64254 жыл бұрын
Great great great video, we need more of these deal analysis scenarios, really helps understanding the whole process.
@MoneyJourneyWithSonny4 жыл бұрын
Don't forget, you have to hire someone to manage your property and hold back maintenance cost as well. Unless you are going to manage the property yourself. Here in Texas, it'll cost you 1/2 of the first month rent and 10% monthly management fee. So, your ROI will be reduced by at least 50% of your numbers to include maintenance fund as well.
@jeromewilson8817 Жыл бұрын
Question: do you own any rental properties in texas anymore?
@LanceCastillo4 жыл бұрын
Wow. Such a huge job. I remember watching some of your first videos on this property, Tarl, when I started my first BRRRR project back in March. I was thankfully able to get my rehab done in two months and I just refinanced out at 3.875% on Friday. I've got a paying tenant which gives me a 25% ROI. Could not be happier. Now I'm looking for my next deal. Trying for a duplex or triplex if I can find it.
@tarlyarber4 жыл бұрын
Awesome job! Keep crushing it
@farmermike92623 жыл бұрын
How did you find your first brrr? And how are you looking for the multi?
@dawens31994 жыл бұрын
I find these videos to be way more informative and engaging than anything else on Bigger Pockets. Keep them coming, Tarl.
@propertypointers4 жыл бұрын
Showing us how to do a floor plan would be a great video. Please do make a video of your process and walkthrough of how it's done on the computer program.
@carolyngraybeal4514 жыл бұрын
A video on the pro/cons of hiring an architect, draftsman, or using a combo of home design software and contractor would be great. When it is better to hire a professional vs "doing it yourself", when and how to use building professionals (engineers, architects, inspectors) most effectively, etc. Also, when in the design phase do you start estimating building cost? Do you have a budget beforehand you know you want to stay under or do you come up with several floor plans, get cost estimates for each plan and then adjust accordingly? For the project in this video, did you have to submit the floor plan to the county? Maybe this varies from state to state or single family home vs multifamily?
@nikolay.advolodkin3 жыл бұрын
I love these types of videos! They are so informative. Please keep doing walkthroughs and analysis afterwards.
@ryanwood80754 жыл бұрын
Fellow PNW dude here!!! Man let me tell you this is the 1st time stumbling onto your KZbin videos and absolutely think your one of the most detailed and informative guys on KZbin. I am a huge fan of BP as well, but this is the 1st time Ive seen one of your videos. Thank you Tarl and I am too starting to invest in the PNW but over in the Columbia Gorge, you have helped me out a bunch with this man!
@JessieOpportunityCostInvesting4 жыл бұрын
Using trees to block noise was a great idea! It's also environmentally friendly :)
@mahbtiu4 жыл бұрын
Yes and not much costly as other options. I am doing the same for my investment house!
@Iliyas5054 жыл бұрын
There are also noise canceling fences fyi
@KB_theauthentic4 жыл бұрын
I'm only 3 minutes in and I'm smiling….good stuff...
@afitechnicalities35414 жыл бұрын
24 years old and just started out just got my 1st now working on my 2nd thank you for all of the knowledge you guys teach me you and Rich Dad poor you guys are changing my life
@tarlyarber4 жыл бұрын
Thanks! This is Tarl
@kyleblinkhorn45324 жыл бұрын
Same rich Dad poor Dad gave a new resolution. I'm working on getting my first deal right now. Will be doing an addition too! I love this shit
@thabolebusha3573 жыл бұрын
realty enjoy Tarl's property walk around. I learn so much every time. i am in South Africa BTW
@paulnelson97154 жыл бұрын
Your videos are amazing, brother. Your real-life examples are incredibly valuable. Thanks so much for sharing what you do. You’re helping a lot of people.
@xxrdotxxАй бұрын
Man! It would be nice to see these projects like this more often. More of these BRRRR or flip projects on biggerpockets would be great to see. Kind of like a continuation of the discussions they have now. A series would be great, talking about the issues they had to overcome, some pointers, and then go over the numbers.
@bigperm50274 жыл бұрын
Excellent, Excellent, Excellent video!!! Really love the format. Show property before and afters then detail though the numbers. Keep up it up.
@realsoulrealestate78834 жыл бұрын
I enjoyed the explanation. Tarl explained how and why he made the decisions he did for this BRRRR. It was very helpful to understand how he calculated his ROI for this project.
@tbserrano24 жыл бұрын
I remember watching the first walkthrough Tarl did of this property! Such an awesome transformation.
@taylormeador2484 жыл бұрын
Expenses? 🤷♂️ Rent: $2,500 Vacancy: 5% - $125 Management: 5% - $125 Repairs: 1% - $25 Cap Ex: 1% - $25 Expenses = $300 Bringing cash flow to: $175p/mo / $2,100p/yr. Yielding a 10.5% return. I don’t know the market where you are but I feel my percentages are conservative.
@ExtraServingsBTS4 жыл бұрын
27:00
@mikefeir4 жыл бұрын
Definitely need a video on how to use designer pro
@paulnelson97154 жыл бұрын
Agreed!!
@bros44412 жыл бұрын
Hi question here: why are expenses like capex, vacancy, and fixing the property when things break not part of the analysis? I know that isn’t a fixed expense but when I look at deals that is the part that makes them not work for me. I will analyze and leaving that out everything looks amazing but adding them in drops the ROI to low
@hendraw1918 Жыл бұрын
Wow, you guys did excellent in explaining the ROI, whether it was a good deal, etc., Thank you!! Subscribed and liked!
@stanleybrown11514 жыл бұрын
Tarl, you always bring the good stuff brother. Thanks, you're one of my favorites.
@tarlyarber4 жыл бұрын
Awe shucks! Thanks Stanley 😊
@SterlingWhiteRealEstate3 жыл бұрын
An important thing to look at is the value added versus the cost to produce that value. Being able to come up with the best ratio is a factor for resale's and for rental's value.
@EddieR1814 жыл бұрын
Great video. Very informative and detailed. Thank you for sharing. BiggerPockets, please add more content like this.
@josellaos56764 жыл бұрын
What kind of loan are you getting on it? Is it a regular conventional loan on your personal name using your own income to qualify? Or is an investor loan with these banks that use rental income to qualify? Thank you. Great video.
@farmermike92623 жыл бұрын
Sucks you didnt get a reply.good question
@josellaos56763 жыл бұрын
Yeah I thought it was a good question too. What I’ve done so far is refinances with banks that qualify the property with their rentals under my LLC. The rates are 5.5% at 60% LTV, thought they would be lower.
@mikewillinvest85163 жыл бұрын
Amazing video! Thorough walkthrough and doing the numbers manually. Keep this content coming! Thank you.
@jwanaplayer40934 жыл бұрын
Thanks for sharing! Especially the part about why you didn’t add a second bathroom but instead made sure the one bathroom was large!
@myt1soo3203 жыл бұрын
Fantastic video on explaining your strategy and I especially appreciate the walk through! Being on site helps immensely
@nbme-answers3 жыл бұрын
23:49 High equity? Where is the equity? He borrowed for the house, renovation & shelled out on holding/borrowing costs ($327k liability). He crosses his fingers and gets a $415k valuation from his appraiser. The bank lets him borrow 75 percent of that ($311k) to (partially) pay off his original lenders so now he has $311k liability with BANK#2 and $16k liability with BANK#1 and an asset with unknown valuation producing $475 net cash flow a month. What were the terms of the original financing? How did he pay for the renovation? Was that out-of-pocket or from the original “hard money" and “private” lenders he mentioned? What am I missing here?
@CaseyBurnsInvesting4 жыл бұрын
Some serious sweat equity here. Big project
@charlesreid51374 жыл бұрын
Landlordism is satanism.
@sullivancrowe91954 жыл бұрын
@@charlesreid5137 you're right. They should have just left this place trashed, falling apart, rat infested and overall uninhabitable.
@KayFabe873 жыл бұрын
Charles Reid : perhaps the government should take over all property ownership and management. Surely that will lead us closer to "utopia". Before you endorse this idea; have a look at government owned and government run residential housing in urban areas, otherwise known as "the projects " and ask yourself if that is a model that you would like to see spread across the country on a larger scale. It would be like the Soviet Union, where everyone has "equal" housing so everyone can be poor and miserable together without having to worry about someone else having a nicer house than they do.
@matthewknotts70033 жыл бұрын
@@charlesreid5137 lmao what? Tell me you’re a liberal with out telling me you’re a liberal.
@charlesreid51373 жыл бұрын
@@matthewknotts7003 lol
@AmericanBorn863 жыл бұрын
You did not account for expenses (vacancy, management, Capex, utilities, etc) in your cash flow?? Seems super tight!
@nobjob113 жыл бұрын
He mentions that since everything is new that he does not factor in Cap Ex. Vacancy is also mentioned as a cost in his rehab - not sure how they factored that in tough. I agree though, seems a bit tight.
@jasonstevens68773 жыл бұрын
This video was very helpful to clarify the entire process. Thank you for producing such great content and being so open with your numbers.
@justinyoung30684 жыл бұрын
Thank you Tarl and BiggerPockets for sharing this insightful how-to video. I am wondering how does the private money lender and/or hard money lender get paid their full investment since the LTV won't be enough to pull out 100% of the out of pocket costs? Thank you in advance.
@Mashcroft884 жыл бұрын
I freaking love these videos, keep em coming!
@nappiral4 жыл бұрын
That post supporting the roof over the kitchen door is really something. Nice job overall
@pipe.dreamss Жыл бұрын
Please do more videos like this! Great detailed info.
@BeauKnowsMultifamily4 жыл бұрын
Nice find, nice rehab. As a multifamily broker in Florida, opportunities are few but a well thought out remodel always pays handsomely.
@johnmcguire64433 жыл бұрын
Hi Tarl. Great video. I am interested in the design program you used. I'm finding one from Chief Architect called 'Home Designer Suite'. I also found one from Virtual Architect called 'Pro Home Design'. Are either of these the one you use? Thank you for your answer.
@Mynameisjoof4 жыл бұрын
Amazing content Tarl. Please let us know what it appraises for!
@oDahaka4 жыл бұрын
6:00 "It's like HGTV but real!" You clownin them hahaha
@jeandechoudens38744 жыл бұрын
Very good video. Like the way you broke down every detail of the rehab and the financial
@Iamstevenyang Жыл бұрын
I would always add a 2nd bathroom, the resell value in the future is always more and you almost always get more money for rents.
@brandonboogren86603 жыл бұрын
Great video! Question: do you include expenses (maintenance, cap ex, etc) in your PITI? It looked like when you were running the number you only subtracted the financing from the income (I didn’t see a line item for operating expenses). Any insight on this would be great. Thanks again for the video!
@brandonboogren86603 жыл бұрын
Never mind you answered my question later in the video 😅
@calebtryhane71393 жыл бұрын
I’m interested in knowing how much of the renovations is done in house by you guys? I am interested in doing my first BRRRR but I am not a great handyman. Wondering if this investment approach is still generally profitable if you rely on majority of contractors to do the work.
@bitterpiglet4 жыл бұрын
I’m assuming your PITI #’s don’t include any vacancy and property management? Fantastic ROI either way.
@LaRhondaTurner4 жыл бұрын
I thoroughly enjoyed this video especially the end running the numbers! Thank you!!
@plane_dad2 жыл бұрын
Love the video, I have done a far amount of new construction, this has helped to inspire me to get back into real estate. You make it look so easy. I like the analysis. Keep doing that, look forward to watching more vids. The key to doing this is what Dave Ramsey says, "you make money on the purchase". That's vertually impossible here. To many people are buying so the purchase price does not leave the "around" 25% equity left at the end. And the hard money here is 15-20% with points and interest. And I don't have a rich uncle like some people have! 😬That's why I quit. I would like to figure out how to buy like all these very successful real estate go roos!! If you do see this I would like to get some information on that, I really like doing this kind of work.
@freddyboss7 Жыл бұрын
Seattle is crazy expensive. That house originally would’ve cost maybe 40-50k here in OKC. But the ARV probably would be only between 150-170k depending on what area of the city.
@stormshadow79284 жыл бұрын
You are amazing man! You educated me too much. Keep it up. Thanks alot
@HomeOwnersPH4 жыл бұрын
Very educational for a newbie...
@OlegLozytskyi4 жыл бұрын
Thanks for motivating me to lear more and make my own content. Great to see your channel grow and read all of these positive comments. Has anyone here was able to take advantage of low interest rates?
@timjacobs66102 жыл бұрын
Excellent video. You guys should do more like this. I'm positive you'll get more subscribers. Keep up the good work.
@GordosLyfe4 жыл бұрын
Awesome content once again!! These videos are so packed with useful information.. Thanks again BP!
@matthewsanders82362 жыл бұрын
I have two questions. First, why do you use private lenders and hard money lenders to finance the purchase and renovation of your brrrr’s? I’m assuming you have the money to purchase the homes so it makes me wonder if maybe there is an advantage of using hard money and paying what seems to be unnecessary interest instead of using your own cash. Second, if you could go back in time at what point would you start keeping properties for cash flow and equity instead of selling? Would that point be 200k , 500k, 1 million in the bank ?
@ChrisCDXX4 жыл бұрын
15:40 where the numbers start.
@MYKECHEXX4 жыл бұрын
Great content Tarl, this was super informative!
@AvidFilms4 жыл бұрын
this guy reminds me of Stu off of the hangover lol
@gmandub14863 жыл бұрын
😂😂😂nah vlad tv
@JessieRawji4 жыл бұрын
This was Awesome!! Easy to follow and understand. Thank you!
@emilelefebvre33154 жыл бұрын
Love this type of video !!! Keep going ! Thanks you for sharing all the explanations, trics, ...
@vidmikevid4 жыл бұрын
I love Tarl’s videos. Always great info. Thanks
@FranFdez-rs9gg Жыл бұрын
What a great video. No BS, to the point, very informative. Thanks
@aaronwhite14263 жыл бұрын
My question is: What does your entire team consist of as far as positions/responsibilities? You've mentioned general contractor but you've also mentioned other small jobs that get handled by other folks off screen (like building floor plans). I am trying to put a team together and I want to make sure I cover all my bases and don't overwhelm myself. Thanks.
@Deshgrame3 жыл бұрын
Thanks for the detail. I really got it how equity and other RoI adding up over time and compensating the investment. But I did not see you talking about the other monthly expenses like, 1. vacancy, 2, Mentainance + Cap Ex, 3 Management Cost 4, Selling cost if you sale, . I suppose another 25% to 35% Cost need to have in consideration or be aware of. Thanks for all the effort. Learning everday.
@cmetarheel4 жыл бұрын
Love these walkthrough analysis. VERY helpful. One question, how long do you plan to keep the property and what will you return look like at the end?
@noheakealoha94874 ай бұрын
I appreciate the breakdown and explanation. Thank you 😊
@Ginger_Dad3 жыл бұрын
saying $475 in cash flow but not setting aside any reserves for vacancy, repairs, or cap x?
@mgm20084 жыл бұрын
Thank you! I always learn things from you, Tarl!
@findingtruth90467 ай бұрын
How do you analyze what to buy the house for and how much to spend on Reno and what a good deal is?
@l3eaver2 жыл бұрын
Lol 😂 at isolate the noise with some bushes. Good one !!! 😵💫😅
@chawk22514 жыл бұрын
This was inspiring! I’m new to investing and just got my first property cash flowing $600. I was shocked when he said he spent $85k on the rehab. Is that normal? How can you be certain you will make the rehab money back in equity or when property is sold?
@brandonlifefamily83314 жыл бұрын
MLS previously sold houses. Gives you a benchmark on prices...b
@farmermike92623 жыл бұрын
@@brandonlifefamily8331 what does MLS stand for?
@logangensens12892 жыл бұрын
@@farmermike9262 multiple listing service
@badgerd3273 жыл бұрын
It seems like adding a bathroom might not pay off in the near future but would pay off hugely in the long run, and quicker rentals and maybe a little bit higher rents. No?
@mikesmith17023 жыл бұрын
great video...clearly one on the most important elements is the re-hab cost. How can you get that amount of work done for $85K? Can you break down what you are paying for all the work? I'm in Phoenix and contractors would likely charge double what you paid.
@traviskaley91744 жыл бұрын
Great video 👍🏼. At what point do you funnel your own capital in to cover all the lending? After the refinance you pay the hard money and private capital off out of pocket?
@merbesfield4 жыл бұрын
Not being critical, but trees will not stop sound. It travels through the foliage. Only walls stop sound. Nice work on the rehab and #brrrr
@Charles-uc3hb4 жыл бұрын
"Vertically challenged" 🤣
@davidr45233 жыл бұрын
If you are a new house flipper or new to BRRRR and you have to compete against someone like Tarl Yarber, it will be very difficult to win. His deep experience, inhouse team, connection to financing and wealth will make him a winner in almost house he buys.
@dariosoto69194 жыл бұрын
If you have a team . How do you do a partnership. What’s the cut for everyone ?
@1.5Koreans0.5American4 жыл бұрын
Cool content. Thank you for sharing 🙌 BRRRRRR!
@mauricestechtalk15312 ай бұрын
Gen Genuine question: Would it be crazy expensive to raise the ceiling/roof of the addition?
@fuccillo1113 жыл бұрын
So much info here! My question is how do you pay yourself? So for instance let's say you did sell and walked away with 60k, do you literally deposit that check into your bank and it's yours free and clear(aside from taxes later)?
@dontbabilly99564 жыл бұрын
Thank You for the insight. Would it make any sense to do an all cash process. Bank fees and loan cost are a lot. I am 66 and don't have a 25 year time horizon. New to real estate investing.
@fliporhold4 жыл бұрын
What would the cost and value been for the second bathroom?
@rojeet37 ай бұрын
Great video, you explained everything very well!
@bkd-newyork2256 Жыл бұрын
BRRRR made simple. Excellent...
@SeniorSpooky4 жыл бұрын
Awesome showing us all the details!
@leverageearnings83874 жыл бұрын
That’s okay.. still not including vacancy and maintenance that need to be accounted for. Sure its 30% coc but its still 5k a year.
@chesswhite50554 жыл бұрын
Yeah but you got 10 properties like that, thats 50k
@kenziecashflow Жыл бұрын
can you do the BRRRR method using a partners money for a downpayment instead? How would refinancing work in that case?
@dhle744 жыл бұрын
What do you think of VI type loans (zero down w/no PMI) for a first time brrrr investment property? How would you calculate an ROI percentage based on zero down and no rehab cost? Would you even bother with a refinance since the appraisal would most likely not change much if there were no rehab being done to the property? Just buying the property and renting it immediately with zero or very little cosmetic cost. Would the calculation be just using any annual cash flow divided by the total cost...which in this case would be only the closing cost?
@Mrcool126843 жыл бұрын
Another great vid man! What company do you get your kitchen cabinetry from? They look awesome!
@Maturelyme4 жыл бұрын
Hey! Great video. What was the location??
@christopheredmunds22304 жыл бұрын
This looks a lot like the 3/1s I see here in Denver, especially with that 415k appraisal he mentioned! Buying my first property in this market, and trust me it is crazy out here.
@christopheredmunds22304 жыл бұрын
Just got to the part where he said this house was in Seattle. Cheers!
@Maturelyme4 жыл бұрын
Christopher Edmunds oh i missed that, thanks!
@Maturelyme4 жыл бұрын
Christopher Edmunds Seattle is so expensive compared to where I live lol because 415k ARV is great lol
@tarlyarber4 жыл бұрын
It's technically just outside of Seattle in a city called Renton
@robertsullivan8873 жыл бұрын
What is the relationship of your private lender to the property? Is his or her loan secured by the property? Co-owner? Other?
@DL-cn6gs4 жыл бұрын
Awesome job. A lot of creativity for making a great home.
@dy789154 жыл бұрын
How do you guys get ARV for hypothetical renovations (such as the second bathroom?). Are appraisers willing to entertain multiple hypotheticals?
@yelgabs4 жыл бұрын
I guess my biggest question is the initial cash amount needed to get everything going. Did you guys take out a loan of $313k from the private lender? How’d you figure out how much to loan beforehand?
@almostanything66654 жыл бұрын
Can you explain how a refinance works?
@AlexChavez-il1hj3 жыл бұрын
It’s to get your money back to invest it on your next property
@almostanything66653 жыл бұрын
@@AlexChavez-il1hj I understand that. I want to know the steps in refinancing a property.
@jeadie81313 жыл бұрын
Do you set aside part of the rent for vacancy, repairs, and savings for eventual replacement of whatever you did not rehab?
@freeestyleobsessed Жыл бұрын
You were using your gross income to calculate your net operating income that’s not how it works if you bring in 2500 a month in rent you got to take 30 to 40% off that for vacancy repairs expenses so of the $2500 rent you might walk away with actual $1700 in your pocket so technically you’re upside down on this property and negative cash flow each month of three to $400 per month
@nanaernesto28913 жыл бұрын
Great video but something I don’t understand, when you refinanced that house how much money do you get back ? 311k right ?