Second BRRR Project

[Brian Watts]

Put my second BRRR project under contract yesterday. It was a foreclosed home that needs little repair. I plan to use the HELOC on my primary residence and a margin line of credit from my stick portfolio again to work this deal. Forecasted numbers;

Acquisition: $70,500 - to be paid out of HELOC

Originally listed at $79,990 but because I brought a cash offer and able to close quickly the asset manager was able to lower the cost.

Rehab: $15,000 - to be paid out of stock line of credit

New floors, fresh paint, new oven/stove. Kicker is the AC's age - expect 5-8k for this item.

ARV: $110,000

Based on low end comps in the area.

Rent: $1,100

Based on local market rates.

I'll keep y'all posted on this one as it goes!