First purchase - ahhh

[Sean Julian]

I am doing my first BRRRR. I could use some backup if anyone has time. I close on the property on July 10. I want a plan ready to execute on July 10.

choice one: get the place rent ready

$42,000 purchase

$10,000 work

Refi not possible due to house value only $60000 and minimum loan I've found is $50000 meaning a $67000 ARV

$4800/yr net Cashflow

CoC 9%

Choice two: get the place refi ready

$42000 purchase

$25000 work

ARV $75000

Refi 75% give me $56250 back or $10750 cash used

$1800/yr net Cashflow

CoC 16%

Paying the extra $15000 nets us and extra 7% CoC

Thanks for the backup

[Evan Polaski]

@Sean Julian  I would call around more banks.  I have a loan out with local bank that was for $37,000.  Granted, I am in Cincinnati, OH, but I would imagine you can find some that will do smaller balances.

On your analysis, are you saying that putting an extra $15k in yields the same rents as "rent ready"?