Potential BRRRR Alert!

[Jonathan Bombaci]

Potential BRRRR 🚨

We just bought this 2 family in Laconia NH last week.

We paid $95,000 and have a rehab budget of about $65,000. The top floor unit just needs a new kitchen, some flooring and paint. That’s going on now and then we’ll rent that for $1,150 per month to more than cover our monthly holding costs.

The bottom floor unit is gutted which as you can see is where the majority of the rehab budget (below) is going.

The banks After Repair Value (ARV) came in at $257,000 (attached).

We should be into it for about $180,000 including closing costs (8% loan + 2pts with private money).

If we refinanced it at 75% ARV we could pull out $192,750

If we refinanced it at 80% ARV we could pull out $205,600

Now this property came to us through a wholesaler and even at the $95k purchase price they made a good amount on the assignment fee so I don’t think this is a once in a lifetime opportunity. In fact we have 3 more projects just like this underway which I’ll share soon.

This particular property might be too far away (90 mins) for us to keep so we aim to do a fix and flip however the backup plan if we cant sell it at the price we want ($265,000) will be just to rent out the bottom floor unit, refinance it, pull all of our money our, and hold it with infinite cash on cash return.

We should have the top floor rented out by December first. Progress updates to follow and we’ll go over projects like this in detail at our FREE monthly meetups in Lowell, Waltham, Worcester, and Manchester. They’re posted here on BP Events tab under the name Pints and Properties but it can be difficult to find so PM me if you’re interested and are unable to find them yourself. 

Best,

Jon