First Time BRRR- REO to Cash Flow

[Sean Michael]

A bit about me: I am looking for financial freedom and a secure retirement, and have a very small amount of money to invest that was generated from a place I fixed up and eventually sold here in San Diego (wasn't the plan, but worked out). Goal is to BRRR 10 properties within the next 3-4 years.

The method: BRRR. My only experience with BRRR is the amazing book I read by David Greene. The book is simple, concise, and an excellent read. Highly recommend.

The property: A sweet duplex located in Little Rock, AR. Each unit has 3 bedrooms and 1.5 baths per side, and is about 1,000 sqft. It is bank owned, and I should be closing Monday. 

The numbers:

• Purchase Price is $43,500
• Closing costs are $2850
• Inspection was $375
• Total all in purchase costs: $46,725

1. Estimated Repairs: $30,000, estimated repair time is 4 weeks or so. 

• Estimated ARV: $112-115k

• Refinancing: 70% LTV on multi families- expecting to pull out $78,400 to $80,500

• Estimated gross rents are $600 per side, and I expect the property to cash-flow between $300-400 monthly based on very conservative estimates.
  
• Ideally will be using the Delayed Financing Exemption to avoid the seasoning period. 

So far Jamie Hoffman and David Dabous from the Hoffman Team in Little Rock have been a pleasure to work with.

Another Biggerpockets.com member, Alex Felice of brokeisachoice.com, has been one of the more giving and informative individuals I've spoken to. He has provided a ton of free advice, and I highly recommend checking out his blog if you are interested in BRRR.

I've never posted on here and am not the most knowledgeable person when is comes to BRRR, but am hoping through trial and error to become a pro. If y'all have any questions please post! There are people with infinite amounts of knowledge that might answer and I am happy to answer anything I can via private message as well.