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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 3 years ago on . Most recent reply

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67
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48
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Marcus Holloway
  • Rental Property Investor
  • Indianapolis, IN
48
Votes |
67
Posts

Final BRRRR numbers Gary, IN

Marcus Holloway
  • Rental Property Investor
  • Indianapolis, IN
Posted

I thought I'd share the final numbers of my first brrrr. 

My partner and I decided to rehab a home in the neighborhood we grew up in. The home, in Gary, IN, had been in disrepair since we were in HS (we graduated in the late 90's). Obviously, our goal is to create wealth, but this deal had the added bonus of both working with a childhood friend and adding value to the community we grew up in. 

We were fortunate to have a great relationship with, in my opinion, one of the best GC's in NW Indiana. He (the contractor) is also from the neighborhood and the father of a mutual friend ours. The project was basically a full gut and could have been overwhelming with the wrong contractors. 

The house was a 3 bed, 1 bath (1000sqft) typical for the area. We purchased the home using cash, personal loans and CCs. Since we purchased the home in an LLC; we utilized a commercial loan for the cash out refi once the rehab was done.

Here are the numbers: 

Purchase price: $5,000

Rehab costs: $55,000 (roughly)

ARV: Appraised for $70K

75% LTV: 52,500

closing costs/banks fees: $4000

Cash out: $48,500

Fortunately, we got great tenant almost immediately after the rehab was done. We stole a tenant from a bad landlord who lived up the street lol. She saw the rehab in process and asked our GC if it was for rent. She's a nurse and signed a lease that started about 2 weeks after the final touches were put on the house. 

We transformed a home that been an eye soar for the past decade into one of the better homes on the block. 

We're satisfied with the final numbers. 

What do you think, BP?

Most Popular Reply

User Stats

304
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212
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Chris Allen
Pro Member
  • Temple, TX
212
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304
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Chris Allen
Pro Member
  • Temple, TX
Replied

Great deal in my opinion! While it may not be what most people consider to be an "ideal BRRRR"; there is something to be said about the value of the other side of real estate investing. Improving our communities, providing quality housing, and getting to share that experience with others is awesome. You might have left over $15k in the deal, but I'm sure the cashflow is stable, sounds like you have a quality tenant, and just sounds like a fun deal.

  • Chris Allen
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