Devils Advocates Needed!

[Margaret Hill]

Hello everyone! I am a new investor in the Toledo, OH market who has spent the past year reading, listening to podcasts, and browsing forums in order to learn as much as possible about the world of real estate. I feel that I have more learning to do, but I think I’m ready to jump in and finally pursue my first deal!

I'd like some experienced investors to poke holes in my strategy and give me some points to consider so I can try to do this thing right. My biggest sticking point at the moment is a lack of capital, so I am going to attempt to BRRR.

Here's the strategy: find a property requiring some light rehab (floors, paint, kitchen cabinets, landscaping) in the Point Place neighborhood for <$60k. Use a private lender for the entire purchase price + rehab costs (~$10k) for an all-in cost of $70k. Rehab in ~3 months to achieve an ARV of $100k, then rent out the property for the required seasoning period before refinancing to a bank for worst case 75% LTV ($75k). The refinance will be used to pay off my remaining debt to the private lender and the equity goes toward my next property. I am wondering if investors familiar with the area think these numbers are achievable?

Please let me know your thoughts. I’ll take all the advice I can get!