New Build BRRR - Cape Coral (B for Buy)

[Patrick Bavaro]

Hi all! Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. If I play my cards right I will be able to do a cash out refi, still cash flow decently and take all my equity out to do it again. Anyone else seeing this in new builds in other markets? Would love to connect. Good luck!

[Buddy Holmes]

@Patrick Bavaro

I have not tried to run any numbers on your case, but in many other cases I have found the old 1% rule pretty much a minimum is having positive cash flow.  If you were to use your after build number, you are approaching 0.5%.  My thoughts would be that you managed to build a great house to turn a profit on. I would sell it for the $400K and buy a couple(or three) of lower cost homes with a better rent ratios.

Just my first thoughts.  Congrads on the low cost build!!