Building my first BRRRR in Guadalajara, Mexico

[Jorge Castro]

Hi,

I am excited because finally I pulled the trigger and bought my first property. I sold a house I was renting and with that money, I could buy this "new" house and have some money left for the rehab.

My main objective for sharing this project is to understand what investors care about before, during and after an investment is done, so I am willing to answer all your questions and share with you all, the information related to the project. At the end of the process I would like to end up with a good understanding of the questions that need to be answered to potential foreign investors. Maybe my future projects could be appealing to more than one member in these forums.

The name of this project will be URDANETA LOFTS. 

It is a house of approx. 1,700 sft of construction, over a land of 700 sft (21ft x 33ft)

The house has 3 floors

Purchase price $102,500 USD

It is well located, it is on a main street of Guadalajara City. We have three metro lines, the house is just in front of line 1 of the metro, 600 feet away of URDANETA station. Two big hospitals are in the surroundings and the industry zone, no more than 5 blocks away.

The idea is to rehab the property and fit at least 9 175 sft studios (each studio will have a bathroom, small kitchen and bed)

I am trying to reach young professionals or doctors, looking for a place to stay, the rent I am trying to get is a minimum of $250 USD per studio per room

The rehab will be done in 2 stages

First stage should cost no more than $25,000 USD and this rehab is needed in order to be able to get a mortgage credit. At this moment this house does not qualify for morgage criteria of the Mexican banks, mainly because there is open space missing needed to reach a ventilation. 

With this rehab, the expected valuation of the property is $150,000 USD

The second stage of the rehab should cost around $35,000 USD for 9 studios +  $1,200 USD per studio in furniture.

URDANETA LOFTS as it is before rehab

Here is a link of a video of the property

Let me know your thoughts, what would be interesting to know about this property? what do you think about the deal? is it a good deal?

Thanks in advance for your comments!

Jorge Castro