Tyler Lyons has acquired and rehabbed three houses in the Grand Rapids, Michigan area, and in the process he's added substantial value to each one. Tyler's goal has been to "BRRRR" - Buy, Rehab, Rent, Refinance, and Repeat. But when it came time to put financing on those properties, he wanted to make sure he avoided the pitfalls that led many investors to lose everything during the Great Recession.
How much debt on your rental properties is safe? Should you keep a good amount of equity in your property, or pull out the maximum in order to buy more? What's better, a 15-year mortgage or a 30-year? And are investors making the same mistakes in financing that were being made leading up to the last recession?
These are questions that need to be taken seriously, so who better to help answer them than "Friends of the Show" Justin Workman and Rob Minch. Justin and Rob join Tyler and me in the studio to perform a bit of Real Estate Therapy and Counseling.
Rob calls on his lending background to compare today's loan environment to the one ten years ago. Justin breaks down just how much money Tyler needs to keep in Capital Reserves for his rentals, and what that means to his ROI. And Tyler shares the process he went through in building his portfolio.
This is a great episode that I know you're going to enjoy. And I guarantee that Justin's CapEx breakdown will make you rethink how much money you should be keeping in reserves for your properties.
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