First BRRRR analysis

[Jason Sung]

Hi all, I am new to BRRRR. Do you think this is OK deal or not?

PP: 150k. 
rehab estimate; 40-50k

ARV: 230-250k

Rent potential: 1700 per month

DFW is a hot market and hard to find good deal. 
If total cash in (purchasing and rehab) is 200k, with ARV 240k, I think I can refi 180k (75%) after regab. I will end up leaving 20k.

I think this property also has some appreciation potential as well and want to hold it. 
What do you think? 

[Andrew Garcia]

Hi @Jason Sung, the biggest thing that new BRRRR'ers forget is the holding cost?

Is the rehab estimate including utilities until the rehab is completed?

Are you financing the purchase and repairs? You need to factor in the interest and finance charges.

There are other considerations but those are a few of the larger expenses.

Hope this helps! Let me know if I can be of any assistance.