Closing in on the Refinance - BRRRR

[Mike Ventura]

Hello BP!

Excited to share that I am closing in on the "Refinance" portion of my first BRRRR. I wanted to share everything noteworthy up until this point. Including some before and after pictures. Hope you enjoy. PLEASE share some feedback!

The Property:

• A little over 1.25 acre
• 1056 SqFt
• 3 Bed | 1 Bath Ranch
• Full Basement (unfinished, may do this at a later date and refinance a second time.

Financing:

• Purchased with my own money. My goal was to rehab and live in the property until I could refinance – hopefully 6 months. Target month was October, on track! Just need to do some exterior yard work!

Numbers:

• Purchase Price: $100,000
• Down Payment: $5,000
• Pre Closing Costs (septic test, well test, etc): $1,937.38
• Closing Costs (not including down payment): $5,706.86
• Rehab Costs: $14,983.18
  • Includes first time purchase of tools needed, shop vac, miscellaneous supplies that will be used for future BRRRRs. I didn’t back these expenses out because they were crucial to me completing the work.

Refinance:

• Zestimate from Zillow is coming in at $200,000. Hopefully this is somewhat right!
• Target Refinance Property Value: $180,000
  • 75% LTV : $135,000
  • Anticipated all in costs + Loan Balance of $95k: $122,607.42
  • “SHOULD” get all of my money back ($27,607.42) in addition to some profit depending on the closing of the refinance.

Kitchen:

Living Room:

[Mike Ventura]

Taylor C. Great question and I wish I knew the actual answer. I would estimate around 50 hours each month, May - August, so probably 200 hours.

The profit should be $5000 after closing costs. So I worked at a rate of $25 bucks an hour which isn't too bad.