BRRRRSTR in Eugene, OR with actual numbers

[Chris Watkins]

I completed a BRRRR on a duplex here in Eugene and wanted to share the outcome (so far). It's an 1890's Queen Anne that was chopped up into an upper apartment with existing long-term tenant, and a hair salon downstairs that I converted into a 3/1 Airbnb. Purchased in February 2023, rehabbed until June, listed the Airbnb in June for the high season, rehabbed the basement in October and refinanced in December. Hard money for purchase and rehab.

Original Purchase Price $305,000
Down Payment $28,793
Closing Costs $11,527

Rehab Costs $80,500
Mortgage Costs $30,056
Utilities $1,275
Taxes $2,729
Insurance $1,251
STR Furnishing $10,142
Total Costs $125,953

LTR Income $7,000
Net STR Income $21,234
Total Income $28,234

Total Capital Invested $109,246

Appraised Value $540,000
Loan LTV% 70%
Loan Amount $378,000
Mortgage Balance $325,148
Closing Costs $9,805
Cash out $43,047

Net Capital Invested $66,199
Starting Equity $133,207
Value Created: $67,008

Hours Worked: 595
Hourly Wage: $113

I was only able to refi at 70% LTV, so I left $66k in the deal. But created $67k in value through the rehab and repositioning.