MY FIRST REHAB WENT A BIT TOO WELL. CONCERNED!!!
So guys, it you refer to my first post I spoke about my very first rehab and how it was coming along.
For context, we purchased this home at an auction, used a PML to finance the deal @ 9.5% APR, 80% LTV on Purchase and 80% LTV on Rehab.
Purchase price was $187,500 (winning bid), ARV was appraised at $240k.
Rehab cost: $21,500
To be honest at the start we had no idea what we were doing. We just decided to jump in and give it a go. After I ran the numbers when I did eventually get some experience, I realized we would actually make a profit 🤣🤣🤣🤣
Our plan was "Get in there, U may lose money on the first one but GET IN THERE".
We have actually decided to do a trial STR cashflow for this property and see how that pans out. As a result it is currently listed on AirBnB.
Thing is I feel worried cuz we gambled on our first property, looks to have worked out good. We've already paid up this month's interest on the PML via the STR.
I just feel like there's a bubble waiting to burst somewhere up ahead.
That said, here are a few pictures of our rehabbed home. Proud of what we achieved.
Kitchen
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So if you flip it you make $6k? Are you refinancing it to keep long term? If so that is a big house and will have some big expenses if anything happens. Yeah I think you need to be more conservative with the numbers going forward.