In your next video can you go into more details on the decision making process you go through when deciding on renovation. Your thought process I’m assuming is close to routine or automatic but as a amateur you probably had to think through your options longer or ask more questions so those lessons learned and tips would be very helpful! Thank you Matt!
@garyholloway125 жыл бұрын
A more granular breakdown of reno costs would've been good.
@biggerpockets5 жыл бұрын
Want more of these videos from, Matt? Like this comment and leave some feedback on what you'd like to see!
@KaramKhalilTV5 жыл бұрын
This method is one of the best ways to get to financial independence in Real Estate. I’ve done it and it works.👍🏻 Good video :)
@pohump5 жыл бұрын
I just started buying houses. I just bought my first one a August. The thing I question about BRRRR is, if you're constantly refinancing your home to pull out whatever equity you have to buy a new one, wouldn't that basically kill the cash flow you had on the property you refi? Sorry for the ignorance.
@KaramKhalilTV5 жыл бұрын
@@pohump @pohump You never want to pull out your complete equity from the house you are refinancing. So if you have 100k in it, refi 50k out of it for another down payment. Your rates will not go up that much higher. As much as cash flow is king, you also aren't doing it for the short term 300-400 dollars per month. So if the cash flow dips $100 but you're able to grab another property, you are still ahead and it will balance itself. (appreciation, equity, cashflow). Hope that helped!
@pohump5 жыл бұрын
Karam Khalil ah, thanks. I’ve read and heard elsewhere that you should always keep around 50% or so leverage. That makes sense. But that leads me to another question, if by renovating you can’t immediately drastically increase the value of your home, then you can’t really refi right? So if want to use this method, sounds like you can really only do it with properties that you know will be worth quite a bit more after a reno.
@pohump5 жыл бұрын
Karam Khalil thanks for the reply btw.
@KaramKhalilTV5 жыл бұрын
pohump The main point of refinancing is to pull out equity to move into another property. You keep repeating that process until, well whenever you want. I don’t understand your question to well in regards to the renovation aspect. Only certain renovations will bring your property value up so you need to be careful with that. Message me on instagram @KaramKhalil_ i’d be happy to explain more there and answer your questions. No problem and congrats on your first purchase!
@mattcoote61735 жыл бұрын
Great channel. Would love to see a series of videos showing how you decided to buy a property all the way through to selling or renting it
@calvinraab87985 жыл бұрын
Love how quickly BRRRR allows you to grow your portfolio!
@kirisutegomen125 жыл бұрын
How did you get started? How did you make reno decisions?
@j.t.h19995 жыл бұрын
DO MORE OF THESE!
@biggerpockets5 жыл бұрын
MORE COMING YOUR WAY!
@NickHiras-sz3pb4 жыл бұрын
@@biggerpockets Do you have any more coming from NJ, specifically North Jersey? Have some ideas on how to produce these videos at a high level!
@lionheart934 жыл бұрын
@@biggerpockets DO more from CALIFORNIA
@Orlando6095 жыл бұрын
I live in the greater Trenton area . Drove past this house seen it in person looks good. Very inspiring to see you doing things in my same area. I'm 1 duplex in and plan on getting more property. I'm building up the courage to try the brrrr strategy. Great stuff mat
@richardlewallen86315 жыл бұрын
1600/90000= 1.78%. You said it’s over the 2% rule?
@kirisutegomen125 жыл бұрын
He meant under lol
@bran81665 жыл бұрын
How did you finance the deal? And what do you suggest for financing for new investors
@SteveIacobbo5 жыл бұрын
Interesting, but not too informative. Fewer details on the rooms and layout, more details about financing options, how to decide what to renovate (vs what to keep as is), what are some issues to watch for when looking at potential properties. The risk is in buying too high or over-improving a property. How do you manage these variables?
@JustinAbroad5 жыл бұрын
Buy a rental property and figure it out. I can tell you don't have one
@ChrisMondoBeyondo5 жыл бұрын
Great content and thorough in an 11 minute video. Very well done. Thank you. I’m sharing this with my team.
@nichoffman21335 жыл бұрын
Very informative video. Where are these $40,000 properties? I can't find anything under $170,000 in Idaho. It would have been nice if he had gone into more detail about that 2% rule and how it applies to this specific property.
@Shini19845 жыл бұрын
X% rule - it should rent for somewhere around x% of the property + renovation costs. This house cost $40k to buy +40k to rehab (if I heard it right), and it rents for around 1600, which is 2% of 80k cost. Anywhere above 1% is decent, 1.5% is good, 2% is great. At least this is what I heard in BP podcasts so far. For more info please go to bigger pockets dot com. Sadly, I don't work for bigger pockets (yet).
@jeremiah59885 жыл бұрын
3:07 in the window scared the shit out of me hahah
@justinb16065 жыл бұрын
Love your content. I don't miss New Jersey though.
@justinb16065 жыл бұрын
@Mike Do Hong Houston
@DudeRealEstate5 жыл бұрын
Yes, love separate entrances on a multi-family. Looks great!
@skunksmisery5 жыл бұрын
Since finding you guys I've totally stopped looking for property in my home area. Equiv property would be almost 5x more here. 90k in, 1600 a month out? I'd have to pay over 500 here to get that kind of rent. Thanks BP, you opened my eyes.
@marinadillon67745 жыл бұрын
You'd have to spend 5 x that in NYC to get a place that can generate $1600 in monthly rent. How come rent is so incredibly high in Trenton NJ ?
@memepapi5 жыл бұрын
Great video! Can you share what the ARV is please?
@raisingentrepreneurs7085 жыл бұрын
After Repair Value
@zookiatookya3205 жыл бұрын
2% rule is literally impossible in Australia. I bought a property that is considered affordable for 430k (140k AUD is around 100k USD) and rent is 1680/month. Other properties cost north of 700k AUD and have a rent of around 2400/month. Good thing our markets crashing lol it is unreal.
@EricVsGamingChannel5 жыл бұрын
Yeah I've heard some horror stories about housing in Australia. Absolutely insane
@robdavol49564 жыл бұрын
I would be curious to hear your strategies for FINDING properties like this. Great Video. Thank You!!!
@ralpharomeo74205 жыл бұрын
Thanks for taking the time out to give us an in depth view.
@ryansiwinski5 жыл бұрын
What are the logistics of converting single family homes into multi family rentals? I really like the separate entrance comments you had and find that to be a very marketable attribute.
@NiceandEasyASMR3 жыл бұрын
I like the color of the floor. I am getting very tired of grey. it's all everyone uses and it's getting phased out gradually.
@billgoodland83905 жыл бұрын
Awesome job Matt. Really appreciate the detail in the video!
@touchecrb57204 жыл бұрын
I know he gave rough estimates but that still put him at 1.8% - 1.9% which is below 2%. Am I missing something? However, please do more of these types of videos!!
@cadehowe39545 жыл бұрын
How are they at the 2% mark? I calculated $1600 a month/$90000 total all in price and it brought it to 1.77. Is the refinance giving them the 2%?
@michaeldeery40755 жыл бұрын
He may have meant to say "just under" and said just over by mistake.
@enriquedeanda44625 жыл бұрын
Math on the fly ..
@thestrappingentrepreneur28225 жыл бұрын
Chow do you find these. I can save like a mad dog. But I don’t know how to look
@TheObserver5675 жыл бұрын
Brad Pietrzak build relationships with realtors would the first place to start. Not one but many. Sometimes just driving around you can see things.
@MrChris42515 жыл бұрын
I really like these walkthroughs! Just a suggestion, anyone thought of doing a before and after?? Would be suuuper helpful to see the before walkthrough, the estimation, then the actual cost and result of everything! My tiny afraid newbie investor brain is making me literally salivate over the thought of that much comprehensiveness...
@kylecouture19175 жыл бұрын
In order to do these kind of deals you need to have alot of cash available to renovate though. Im looking to buy my first house which i will rent out rooms while i live there. Im 26 so i will need to take out a loan on something "move-in ready"
@guzman90115 жыл бұрын
Good idea knocking the old garage down. Created more space and more parking. Less liability
@Shini19845 жыл бұрын
Awesome video, many thanks for the walk through!
@digitalliquid51595 жыл бұрын
Please explain he said duplex But i saw three power meters 🤨🧐🤷♂️
@howtoguro5 жыл бұрын
Maybe he's living in one, using an FHA, and figured it wasn't relevant? More likely it has an illegal basement unit.
@codydelong38645 жыл бұрын
One for one unit, another for the other, and one is the house meter which is for the common lights outside, basement, etc
@Financeloverleo3 жыл бұрын
How much is the home appraised for now that renovations are finished?
@steelcurtain37465 жыл бұрын
Can't hit the 2% rule in springfield mo. Rents are so low compared to acquisition costs.
@scut554 жыл бұрын
you didn't mention how much more the house is worth after your renovations.
@justinbradford98265 жыл бұрын
Looks great from what it was before. Would love to find a gem like that.
@PS-rb5fw5 жыл бұрын
I was reading Brandon’s book on rental property investing on page 68 the page is about BRRRR investing I checked my phone and this video was up coincidence I think not 😮
@boxerboy8605 жыл бұрын
Brent Somme oh BiggerPockets are everywhere and once you search real estate investing once google ads starts bombarding you with Tai Lopez 82% off mentor programs and the guy who is always “ on a hike with some great friends” with fake sweat on his face and talking out of breath
@PS-rb5fw5 жыл бұрын
Metta HD lol
@boxerboy8605 жыл бұрын
Brent Somme lol I’m reading Brendan’s book too trying to find my first deal with none of my own money and maybe do a flip
@samewindblowsonusall99255 жыл бұрын
So a 90k mortgage is roughly $800/m. If you’re making $1600 in rent, after repairs and vacancy, you walk away with maybe $500/m... what is this 2% you’re talking about?? Can someone explain pls
@PaulBerginWyckoffian5 жыл бұрын
Awesome video, thank you for posting
@guzman90114 жыл бұрын
What’s the ARV?
@blipblop92 Жыл бұрын
Anyone know the type of LVP hes using that can replace out a single piece?
@bart1meuz5 жыл бұрын
No washer dryer for either? Separate hvac?
@kylercook79685 жыл бұрын
So in order to make this play you need 40k plus 45k plus 5k. Not really a basic investor level move, but interesting for sure. This would be after doing real estate for a while.
@heathweber50145 жыл бұрын
Or you need a source of funding for the original purchase (i.e. private money, commercial loan, etc.). You don't necessarily have to use your own cash up front to do it. You just need to be able to borrow the money for the period of time up until you get it rented. Then you can refinance to a more long-term rate and pull the new-found equity out.
@NoKillMemphis5 жыл бұрын
umm...did the guy that came to the window in the background at 3:08 have on pants? Sorta didnt look like it but the glare off the window didnt give a clear view...lol
@ricardohodgson25665 жыл бұрын
Great video. I am in the irvington location an would love to start my first brrrr. I am looking for contractors to work with.
@castilloapparel64864 жыл бұрын
Im in irvington also. Also looking to start doing brrrr
@avibeperson11805 жыл бұрын
Seem to be dong a lot in Trenton. Im in Trenton also and would like to meet up at the local reia
@shymeeee5 жыл бұрын
If he said he would've preferred gray, or even dark wood flooring, instead of the contractor's pick, I think he is totally wrong. That contractor has a good eye!!!!!
@SwaggMos165 жыл бұрын
What's the arv on this property
@jayram645 жыл бұрын
I have to learn the BRRR strategy
@Matt-pd2cq5 жыл бұрын
Prices of the siding and such??
@SupMirza5 жыл бұрын
Great! Need a mentor like you
@JohnDoe-du1no5 жыл бұрын
What kind of contractor uses blue tape free hand painted
@supamadevu45125 жыл бұрын
I,nformative, fast, well explained. Great video.
@SeanLunny5 жыл бұрын
Super helpful thanks BP!
@juniorb37755 жыл бұрын
ARP ? average days on market ? are you hiding something :?
@johnmccool18075 жыл бұрын
How do I link up with you? Im local to Trenton
@wdgoings5 жыл бұрын
What’s the 2% rule? Is there a video for that?
@robertleonard68065 жыл бұрын
It is a rule of thumb. So, not really a rule, but just a quick analysis method. The 2% is the monthly return on the amount invested. Example, if you invested $40k and get $800 gross monthly income, you achieve the 2% rule. In the video, he invested $80k and was getting $1600 gross monthly income, so that is a 2% monthly return on his investment.
Are landlords responsible for shoveling snow off entrances???
@gusmill57015 жыл бұрын
Quick question.. if anyone has any suggestions I will highly appreciate it. My wife and I put a offer in for a investment property at 35k. The offer was accepted but the bank appraised the house at 32k. The property is 5min away from downtown York,pa.. it also a historic home. What would you do after the appraisal came back lower??
@americafirst77855 жыл бұрын
I would sue them
@robertleonard68065 жыл бұрын
Thank the bank for saving you from over paying. Investing with cash is great, but I see cash investors make mistakes on their buys on a regular basis that a bank would have saved them from. Depending on your investment objective, I would renegotiate or go back to the drawing board and spend more time getting to know your market.
@briansmith62975 жыл бұрын
This simply means that you’re paying to much for the property. Keep looking. Be patient and you will find a good deal. DO NOT PAY RETAIL. THAT (in my opinion is rule number one in investing).
@nobodycamnotguilty44974 жыл бұрын
Try financing through a different bank. Sometimes you just get a bank that uses an appraiser that is very conservative. Check the comparables in his report and see if they make sense. Speak to immediate neighbors, perhaps they did a refinance and they have a different value then you have. Perhaps if they give you , you can send their copy to the bank for re-evaluation. I had a bank order a new appraisal from a different Company in the past. I guess the easiest way is to question the person that told you it was worth more. Where did he get his number?
@everything28725 жыл бұрын
Great video nice job. No hate just wondering wtf is up with the eyebrows?
@wojak1685 жыл бұрын
That looks like a run-down ghetto in the middle of nowhere and it's in the middle of a nowhere state. Who would actually live there? Like do people even exist there lmao? The fact that this is even possible in such a strange twilight zone-ish area kind of inspires me to actually do it. If it's that easy like why not just go for it
@TheObserver5675 жыл бұрын
Wo Jak Jesus man. There are many levels of income and people. Sometimes this is all they can afford with the low paying jobs.
@devinm.61493 жыл бұрын
I prefer lighter colors, myself.
@TheMawuena5 жыл бұрын
great video. Like it. The Mawuena
@J.futch975 жыл бұрын
At 3:05 I thought the house was haunted lol
@ufo696915 жыл бұрын
I guess i should already know what BRRRR means.
@myreplysucks79845 жыл бұрын
I am all about smaller pockets...living financially free, broke.
@billytan8885 жыл бұрын
What city is this in?
@lucagraziano43925 жыл бұрын
Could anyone tell me what the 2% rule is?
@pierreeade5 жыл бұрын
Luca Graziano 2% rule means the rent you receive is 2% of the purchase price. So a $100K home gets you $2000 in rent (all units). You will also hear the 1% rule which is the same concept.
@lucagraziano43925 жыл бұрын
Pierre Eade thank you
@berrisgomez52903 жыл бұрын
What is brrrr
@kylejacob55295 жыл бұрын
Rent rehab refinance?
@boxerboy8605 жыл бұрын
Kyle Jacob Buy,Rehab,Rent,Refinance,Repeat It’s goes in that order
@lionheart934 жыл бұрын
You will never get these deals in California. Not sure how you guys are able to charge 850 per room when a single room in CALI goes for almost 2k lol. interesting
@kylejacob55295 жыл бұрын
What's the other r
@BIGMASTERJ5 жыл бұрын
Kyle Jacob buy,rehab,rent,refinance,repeat
@elmosoprano28875 жыл бұрын
the hood
@wireashly5 жыл бұрын
sorry its 3:08
@lolux65775 жыл бұрын
Ibk
@Mr.B.man.5 жыл бұрын
MotorMouth
@dillansherwood29304 жыл бұрын
camera man horrible
@RickyFunk3 жыл бұрын
A duplex for $40,000? Hmmmmmmmmmmmmmmmmmmmmmm
@denmae19715 жыл бұрын
Settle down Matt
@menardtexsampson37455 жыл бұрын
👌🏾💥
@priceandpride5 жыл бұрын
Looks like a terrible flip house, invest in better design options
@airjordanatthis5 жыл бұрын
Just showed us a shitty house
@leeprolhs5 жыл бұрын
NO NOT A GOOD PROPERTY FOR A FAMILY WITH NO KIDS. Who wants to hear kids, people all day? totally too close. Im sure you got that place dirt cheap.
@avidyp47885 жыл бұрын
Yeah, hmm... This is a slum house with a lot of worthless facade to mask the true story of this house. Making one house a duplex is slum lording.. Plain and simple.