Rental properties can get away with a lot less. For cosmetic rehab, which is what it sounded like, you could have put in half the amount and still commanded market rents. Understanding comps and ARV, helps give you the option to flip, not just refinance.

Great story. We need more people to share their experiences!

Thanks for being honest and not trying to flex or anything appreciate the honesty and transparency

Thank you for your experience. I’m glad you are still being optimistic about it

I'm sure the home will appreciate in years to come, it's beautiful. Good luck to you

Dang thanks for sharing! Getting ready to do my first BRRR on the third property I own.

Hey Brandon, seeing this video a year after it was made, but thank-you for your honest story on the BRRR method and what you learned + wished you had done differently. I am hoping to try this method at some point and this was very helpful too see what can go wrong and things to look out for. Also great to hear the deal is still cash-flowing and was a strong ROI investment. The thing that is alluring to the BRRR method is saving money once, buying in cash (if you can), and pulling that money out for the next deal and so forth, so can't wait to cautiously start, thanks again!

Thanks for sharing this. Comps are very very important.

Thank You for sharing with us to always analyze a deal.

Great video thank you for sharing your experience. What a learning experience! It helps me better understand the BRRRR method and what to do for my next deal. Thank you!

I'll make sure not to make the same mistake. Thank you for sharing your experience!

Great job on the property purchase and investment. Thank you for sharing your experience.

Appreciate the honesty! Good luck on your next one!

I respect the transparency, may fortune flow your way

Thank you for sharing, great advice

Thank you. You don't know how highly valuable is your vidéo. Love you bro

Thank you for being so honest and teaching us

Thank you for sharing your experience

Thank you for sharing your mistake and allowing us to learn from it! The renovation looks great and at least your still in the black from rental income

Thanks for your transparency. This is good information.

Thank you for being transparent

Great information. Thank you so much. I’m in the buying, rehab stage. The renter is waiting and I am trying to stay within a budget so I can refinance.

Thank you for this Brandon ❤️

Comps are so important thanks for sharing your experience on this brrrr investment hopefully your still getting good cash flow from it for years to come

Thanks for the video! Just a note Cashflow is not everything the property makes after the mortgage payment, Cashflow is after all expenses as well, insurance, property management fee, maintenance savings, vancancy savings, capex, annual taxes, water or whatever landlord pays above mortgage, after all that is factored in, Cashflow is that number of the monthly profit of a property after all those things. It’s actually what the landlord is making profit on a monthly bases. Just so others can see. BiggerPockets has great vids in this. Again great video and thanks for it mate!

This is good info! Luckily You can always refinance later. Though your money will be tied up

Thanks for the honesty

Your honesty matters so much. Don't five up. Your next one is gonna be a hit for sure. You have helped everyone elwho sees this.

This is super useful thank you for sharing!

Thank you,that's a great video and a great advice. Hope your next property will work out better

Thanks for sharing and being transparent with the lessons learned! May i ask what cities you are investing?

So grateful I came across your video. Preparing to do my first BRRR, so nice to know about front-end comps research before buying and the amount of equity needed to refi. Much appreciated, Brandon!

Very informative video thank you!

Thanks for sharing!

Thanks for sharing

Great content bro!! Thanks!

that duplex is killing it

Great tip!

As an appraiser and broker I think this really helps me to do good BRRRR deals , I still leave some money in my deals but I have a good idea of where they will appraise after they’re fixed up I bought a house for $65k put in $40k and it appraised for $215,000. I was able to get a loan for $171,000 and still cash flow a little each month as the rent is $1350 and the payment is $1105 Not every deal goes like this though lol

great video with great information! most other youtubers don't explain the fails or downfalls, only the successes

Thank you sir for the video

Thanks for the video

Thanks for the honesty and transparency! Really appreciated! Which area was that the house you purchased, in which year and how much does it cost today?

Appreciate for the information

Appreciate the honesty and despite the money "loss'; lessons gained are priceless.

Comps are very important to look at before buying. I also look at the cost of rent in the area I am looking to buy as well. You need comps for rent and property value. I think anyways it wouldnt hurt to check. Great video by the way, letting other potential investors know some of the details that go into property investing. This is one of the more important ones, theyre all important

Nice! Thank you for your honest feedback! Thumbs up from me.

Thx for sharing, and getting nice rents. I admire your hard work in this property. It is critical to do all due diligence from beginning to the end - comps, rent comps, home inspection, rehab cost, refi prior to buy. I am looking for out of state cheaper properties (than CA) for BRRRR, for rental, and airbnb. Hopefully that will less risk since I am over 60 yrs old, and my wife will k$@ me if I screw up. Also want to generate cash doing wholesale and other RE services. Keep sharing real stuff. The next RE downturn will make action takers very wealthy in a few years. Sadly I could have bought more homes in 2008 in CA, self to blame. Is there such a thing as no point / cash closing for refi?

you should have done a DSCR loan where the bank just base on the rent value and dont need to look at the appraisal value. Because you are cash flowing a good bit it should be an easy qualify.

I just backed out on a quadplex deal in Huntington WV. Fsbo property for 50k$. Contractor estimates 300k$ Renovation which is a total renovation even moving boards around to create 2 bed 1 bath units in each. Comps however did not support this deal. There are only two quads to compare and neither one has been renovated that had sold in last two years. One sold for 250k, the other for around 300k. I was going to find this deal with private money lender who was going to loan me 325k. In order to pay him back I needed the home to appraise for 435k to get 75% loan to value to pay back my private money lender his 325k initial investment to me. It wouldn’t have worked. It would have cash flowed but I would have owed my lender around 106k because the home after Reno probably wouldn’t have appraised for more than 325k in my best educated guess

Awesome video man! Looking to do this in the future and it was super insightful to hear you. Still a great investment and don't take that "appraisal" with too much thought, in my experience, you can have three different appraisers go in and get three different numbers. They would much rather give you a range than a flat out number if you could.

It's a rental, I wouldn't have done the renovation as nicely as you did. To your ultimate conclusion, yes, you should have looked at the future renovation costs vs the possible neighborhood value. Whether is will be your own residence, or a rental, try not to have the most expensive house in the neighborhood. But you now do have a nice duplex which is bringing in a good income.I'd say you're doing better than the stock market and better that all cash, in the current economy. The duplex will still rise in value, and you have a positive cash flow, so rest assured that it's a good investment overall.

Wish we had more videos like this online with lessoned learned. Love the info! Thanks

I owe 122k for a property profiting about 1700 a month from this property. I recently renovated this property and comps are 400k+. I want to try the brrr method but I'm a little scared because I want to keep this property because it holds sentimental value with me. I can renovate the basement and get another thousand a month from it. Total profit with be about 2700 a month. But if refinance under my llc my monthly payments will go to 2600 a month minus the insurance and taxes.

Thanks.

Awesome video thank you for this! It's nice to see that even with so many things going wrong on the refinance side you were still able to cash flow the duplex and make the deal work in your favor!

Thank you

If you're locked into a zip code, sometimes you have to be your own comps. If you own a few buildings in certain location, you may need to sell a renovated deal to create at least one comp to help you refinance your other deals.

thanks bro

One tip for you. Walk with the appraiser and subtly mention how much you are hoping the house is appraised for or how much you plan to borrow. They’ll probably not respond to it but at the end of the day they don’t want to be the reason a loan doesn’t go through. And if it’s a difference of like 20k they’ll probably make sure it lands where it needs to. Obviously the number has to be in the right ballpark. During a regular purchase the appraiser knows the purchase price. During a refinance they do not. So it doesn’t hurt to drop a hunt 😉

Hey Brandon, now they you have learned thing and went through it. What has change in your business plan and things you would do differently now... type of loans, research, budget or anything that you now know to do that you didn't?

Amazing video brother! There’s bigger mistakes that could have happened but you minimized them forsure. This is what creates solid investors. Mistakes in this business are inevitable.

Good information! I recently became a realtor sold my own house trying to figure out the best way to invest 180k but with the market the way it is and me being in south florida the intrest rates ontop of HOAs and overall price just dont make sense for anything ): so I feel like this is going to be a waiting game for a little bit to see how the market goes.

How do you check the prices of the houses that’s surrounding the investment property?

this is hardly a fail - not every property is the right fit for this. 14% cash on cash is a great return. Do you have a guess on how much you saved by doing the work yourself? was it worth your time?

Hello Brandon. Just wondering how are you planning or if you are planning to get money out in the future. I am in a similar situation. Good cashflow, but the change in the market made BRRRR not possible. I was thinking about a HELOC. Other than that wait until market changes. Any other strategies you know of?

So you paid 64839,48 dollars to renovate the house. That brings in an extra 1170 dollars monthly. This means it will take about 55 months to break even. After that period you'll make an extra 1170 monthly until the next renovation.

You still got a nice cash flow at least I would of keep the property honestly !

thanks

Great video man! I am going through this exact situation right now. I ended up overspending on the rehab so my only option now is to sell, unless i decide to keep it without refinancing, and rent it.

Thank you so much for sharing, I didn't know that this could happen and I wish you nothing but the best :)

That’s the real tricky part of trying to do financing on any duplex that is a bit of an anomaly type area.. meaning no real comps to compare to. I think that’s what really hurt the ARV there. Had there been a condominium near by or other multi family… you probably would have gotten what you aimed for. Financing multifamily in general is a step up challenge from a typical single family. But huge props to you for taking massive action and great cash flow!

Baseboard heat is fine. New windows doesn’t bring in additional rent. $120,000 in renovations!?!?! That’s a lot of money! What city are you?? Because Seattle is strong strong market

Did you do all the renovation work yourself? That’s very impressive. Good work.

Since you were unable to do the refinance, what did you tell the original lender for the repayment? Great video thank you

I’d say it’s a win based on your cash flow. 13-14% ROI is really good. It takes about 7 to 8 years to see that back.

👍

Great video, finally someone who telling us the truth, I hope you get your money back soon, but don’t worry you still get in cash flow,keep the property and refinance in about 2 years, and work with hard money lender 👍

Have to ask, so how did you pay back the money for renovations l, or did that money come out of pocket?

Have you took any loan for the 25%. Down or you pulled from savings or gift or from friends ?

So if i was to buy a house or duplex don't revonate it for more then what they're selling for in the market ? Stuck between a 300k home or 430k duplex

Did the 120k investment for renovations into the property come out of your own pocket? Or was this a hard money loan?

How did you find out there was water damage in the roof after closing?? Did you not get a 4point and wind?

*SUSBCRIBED for an honest and brave review delivered in an easy and straight forward way. Good voice tone that is easy on the ears. no fake passion no screaming no hype. Keep up the good work.*

I think your cashflow estimate is a bit off...I assume you pay taxes, insurance, have to account for maintenance and vacancy? Thank you for sharing your experience. Did it take you longer than it would have just hiring a contractor? I learned that lesson the hard way.

You failed the brrr but overall it’s a great investment. Could you have put half of what you did into renovating it? Possibly get used kitchen appliances?

Why would you keep cash flow positive by that much and not remortgage with a shorter term so you’re not taxed on extra income? I realize write offs with interest, property tax etc can reduce tax paid but curious…to me it makes sense to remortgage at a term length that matches the income from the property, so I don’t have a bigger hit at tax season?!? I’ve also not yet pulled the trigger on a property 😂😂 so what the hell do I know? That’s why I’m asking I guess 😊

We just did our first BRRRR and the one surprise that caught us was that our bank would cash out refi 80% of the value of the home OR 80% of the cost we had into the home, whichever is LOWER. We were able to work it out with the bank, but that was a gut-check when we went to refi.

You can probably find a credit union that willlet you refi up to 90% out

not really a fail. it’s just the refinance didnt work at this time. keep holding it by renting the units and have faith that rate will drop

Yea that sucks, just keep it and enjoy that cash flow.

What area

How much is the property appraised for now? Despite not being able to refi that cash flow is insane!

Biggest lesson here; never SPECULATE!!!

How tf did you get a roof redone for $4k??

what is 'comps'? im from the UK and dont know this word....

So what's your next plan?

$13% is good!

So I still don't understand the whole 30% thing. Can someone please explain