Our newest BRRRR in Texas

[Jeff Richardson]

We have a contract on rental #6. Cash out of pocket $15,000, Purchase price $89,000, rehab $23,000, ARV $135,000, capital gain $12,000, 80% return on capital gains, monthly cash flow $463, 37% cash on cash return, total return for year 1 without appreciation: 125%. We have or are looking to invest in DFW, dallas, Fort Worth, Texas, Houston, garland, mesquite, Rowlett, Katy, sugarland, haltom city, Denton, Waxahachie, Waco, Austin, San Antonio, round Rock, Gainesville, Justin, Arlington, Grand Prairie, Irving, farmers branch, rockwall, Corinth.

[Jeff Richardson]

@Cameron Tope We list the properties ourselves and typically get the tenant in place without incurring any costs, by setting up group showings. As far as Cap Ex, we replace everything that will go out in the next 7 years upfront and factor that into our rehab (We will sell within 7 years to trade up to apartment complexes when Cap rates are higher). As far as vacancy goes, we typically have the highest quality property in the area at the best price to get the largest tenant pool possible, we then screen them thoroughly and check with multiple personal references and we go back to 2 of their previous landlords for recommendations, to date we have not had any vacancies, not a single day except for the marketing time after the properties were rehabbed (typically 2 weeks). We have another property in Houston that our monthly payment is $603 PITI, and rent is $1,150, so the $463 is on the lower end.