Duplex under contract

[Luke Diem]

I have a duplex under contract right now. Purchase price $70,000 and could use around $2,000-$3,000 in work (possibly less). Each unit should rent for about $625-$650 each. I am a brand new REI and this will be my first deal if it goes through and the inspection checks out. I guess what I am looking for on this post is any advice on this deal and also advice on what additional steps to take during or after your first deal. Also if the BRRRR strategy will work on this property to pull my down payment out and move on the the next property (I believe this property appraised for around $80,000).

[Rob Myers]

Your transaction costs will eat up the additional equity you want to try to pull from this property. $73k invested for $80k appraised value isn't a good candidate for the BRRRR strategy - especially knowing that you only have 15% into it. It doesn't mean it's a bad deal, only that I wouldn't plan on pulling any equity out of this property any time soon.