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

@pj0017

2 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

Great great great video, we need more of these deal analysis scenarios, really helps understanding the whole process.

What do you think about this BRRRR investment? Let us know below!

@jacethornton3923

4 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

@CryptoEd237

4 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-qo7yx

4 жыл бұрын

Do a video on the house design software

@ramtinmalek3165

4 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!

@LifeCoach44

3 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.

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!!!

I find these videos to be way more informative and engaging than anything else on Bigger Pockets. Keep them coming, Tarl.

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?

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.

I love these types of videos! They are so informative. Please keep doing walkthroughs and analysis afterwards.

I remember watching the first walkthrough Tarl did of this property! Such an awesome transformation.

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.

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.

@tarlyarber

3 жыл бұрын

Awesome job! Keep crushing it

@farmermike9262

3 жыл бұрын

How did you find your first brrr? And how are you looking for the multi?

Fellow PNW dude here!!! Man let me tell you this is the 1st time stumbling onto your KZread videos and absolutely think your one of the most detailed and informative guys on KZread. 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!

Excellent, Excellent, Excellent video!!! Really love the format. Show property before and afters then detail though the numbers. Keep up it up.

Amazing video! Thorough walkthrough and doing the numbers manually. Keep this content coming! Thank you.

I freaking love these videos, keep em coming!

Tarl, you always bring the good stuff brother. Thanks, you're one of my favorites.

@tarlyarber

3 жыл бұрын

Awe shucks! Thanks Stanley 😊

This video was very helpful to clarify the entire process. Thank you for producing such great content and being so open with your numbers.

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.

I'm only 3 minutes in and I'm smiling….good stuff...

@afitechnicalities3541

4 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

@tarlyarber

3 жыл бұрын

Thanks! This is Tarl

@kyleblinkhorn4532

3 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

realty enjoy Tarl's property walk around. I learn so much every time. i am in South Africa BTW

Fantastic video on explaining your strategy and I especially appreciate the walk through! Being on site helps immensely

Using trees to block noise was a great idea! It's also environmentally friendly :)

@mahbtiu

3 жыл бұрын

Yes and not much costly as other options. I am doing the same for my investment house!

@Iliyas505

3 жыл бұрын

There are also noise canceling fences fyi

Great video. Very informative and detailed. Thank you for sharing. BiggerPockets, please add more content like this.

I love Tarl’s videos. Always great info. Thanks

Awesome content once again!! These videos are so packed with useful information.. Thanks again BP!

I thoroughly enjoyed this video especially the end running the numbers! Thank you!!

Love this type of video !!! Keep going ! Thanks you for sharing all the explanations, trics, ...

Thank you! I always learn things from you, Tarl!

Very good video. Like the way you broke down every detail of the rehab and the financial

This was Awesome!! Easy to follow and understand. Thank you!

You are amazing man! You educated me too much. Keep it up. Thanks alot

Great content Tarl, this was super informative!

What a great video. No BS, to the point, very informative. Thanks

Excellent video. You guys should do more like this. I'm positive you'll get more subscribers. Keep up the good work.

Awesome showing us all the details!

Wow, you guys did excellent in explaining the ROI, whether it was a good deal, etc., Thank you!! Subscribed and liked!

I loved this video. Thanks Tarl

Thanks for sharing! Especially the part about why you didn’t add a second bathroom but instead made sure the one bathroom was large!

Awesome job. A lot of creativity for making a great home.

Please do more videos like this! Great detailed info.

Great video, you explained everything very well!

I appreciate the breakdown and explanation. Thank you 😊

That post supporting the roof over the kitchen door is really something. Nice job overall

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?

Cool content. Thank you for sharing 🙌 BRRRRRR!

Some serious sweat equity here. Big project

@charlesreid5137

3 жыл бұрын

Landlordism is satanism.

@sullivancrowe9195

3 жыл бұрын

@@charlesreid5137 you're right. They should have just left this place trashed, falling apart, rat infested and overall uninhabitable.

@KayFabe87

3 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.

@matthewknotts7003

3 жыл бұрын

@@charlesreid5137 lmao what? Tell me you’re a liberal with out telling me you’re a liberal.

@charlesreid5137

3 жыл бұрын

@@matthewknotts7003 lol

Amazing content Tarl. Please let us know what it appraises for!

Very educational for a newbie...

Nice find, nice rehab. As a multifamily broker in Florida, opportunities are few but a well thought out remodel always pays handsomely.

Awesome video, appreciate the real world example!

Such a gold nugget info. Thnkz appreciate. You sharing your experience. 👍💯🙏

Very helpful, thank you for sharing your knowledge

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.

6:00 "It's like HGTV but real!" You clownin them hahaha

Amazing content. Thank you so much!!

Great video, thanks so much.

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?

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?

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.

Freaking awesome vid and invaluable info. TYSM!

Definitely need a video on how to use designer pro

@paulnelson9715

3 жыл бұрын

Agreed!!

Great video

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.

Another great vid man! What company do you get your kitchen cabinetry from? They look awesome!

BRRRR made simple. Excellent...

Very cool project. Congrats

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?

The way you said that about the comps and carpet made me think of you having a carpeted kitchen.😆

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.

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.

Perfect explanation

"Vertically challenged" 🤣

So do the same steps apply when just holding to rent and fix up?

15:40 where the numbers start.

How long for this complete brrrr will you delay capital gains and what do you base that number off of. I have a rental that was new construction on 2013 and feel like I need to start preparing for that. Thanks.

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.

Thank you for sharing.

what kind of trees did u plant in the backyard that would potentially help in suppressing some of the busy road noise?

How do you guys get ARV for hypothetical renovations (such as the second bathroom?). Are appraisers willing to entertain multiple hypotheticals?

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.

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.

@ExtraServingsBTS

3 жыл бұрын

27:00

What would the cost and value been for the second bathroom?

Omg I just heard you on BP podcast and towards the end I heard we are into a lot of the same stuff so I followed you on Instagram and now this gets recommended. Would love to talk!

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

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?

Lol 😂 at isolate the noise with some bushes. Good one !!! 😵‍💫😅

Do you set aside part of the rent for vacancy, repairs, and savings for eventual replacement of whatever you did not rehab?

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.

If you have a team . How do you do a partnership. What’s the cut for everyone ?

How much harder does the remodel become once you start tearing walls down? As far as permits

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)?

how did you know exactly what to put into it in order to get your appraisal at the amount you wanted? more details please or a link to a video if you have one. thanks

What is the program that you use it to draw? By the way nice ideas.

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!

@brandonboogren8660

3 жыл бұрын

Never mind you answered my question later in the video 😅

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?

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.

amazing !!

Does the stove have a vent now? Asbestos siding?

Hey what’s up bro! I have a quick question sorry to bother you man, did u finance the entire purchase price and Renovation cost with hard money and private money or did You also put down some of your own money as well? I’m assuming you did since you had to leave 20k in which wouldn’t be possible if you owed it to a hard money or Pm or am I wrong? I’d love to be corrected new to the game soaking up what knowledge I can

may be a dumb question..... but, do you have to pay monthly on the private money loan until you refi, Or is it paid in full when you refi?