Successful first time BRRRR!

[Paul DeSilva]

Hi BP, 

So I'm really excited to say that I (with the help of my team) have completed my first real BRRRR. Here's the brass tacks on the deal.

- Buy an REO two family on 7/11/2017 for $60,000

- Rehab from July - October and Holding Costs $65,000

- Rent Both units $2300.00 combined. 

- ReFi (house appraised at $219k) at 80% LTV we got $175,200. Closed on 7/20/2018

- Repeat On our way to buying an undervalued 7 unit (waiting for amended contracted to be signed by seller as of Friday) 

All of this was funded by a HELOC on my primary residence. Almost no money was out of pocket. The ReFi paid the HELOC back, and there was enough money left over for the down payment on the 7 unit.

This would not have been possible without the BiggerPockets Website, Podcast, the books I have read and a lot of persistence, patience, and planning. 

Thank You ,

[Paul DeSilva]

@Mina G. They considered the HELOC in the DTI, the numbers still worked on their analysis.

@Joel Fine Playing with house money is an awesome feeling especially that almost 100% of this deal was funded with the equity from my primary residence. It's an infinite ROI. I'm sure you are right on track.

@Ryan Proffit Its just about break even right now to be honest (it was a beast before the refi), but I am very conservative with my numbers, for example I just installed two new boilers and new kitchens, appliances, gutters, windows but I'm still accounting for 10% cap ex. That being said this refi launched me into a very good cash flowing 7 unit so I feel that it was a the right choice.