Need help analyzing brrrr deal

[Simon Obas]

Hey y'all! I need help analyzing a potential BRRRR deal.

Purchase price $215k

ARV: I'm not exactly sure. I cannot find any comps that makes sense. I'm thinking (more so hoping) high $200s.

The house itself doesn’t need much work. I definitely need to rehab the kitchen. the home currently has one full bathroom and a half of bathroom. My plan is is to add another bathroom (standing shower) to increase the value. I also plan to finish the attic which can be used as a living space, it’s already pretty much done. I’m “assuming” this will also increase the value of the home.

Rehab: $30k conservatively.

Rent: $2000 a month

Context: The home is located in a historic neighborhood in New Britain Connecticut, Which is why I put in an offer knowing the margins would be tight (I think I got excited). I have no problem telling you the address of the home so if you want to look it up and lmk your thoughts I would greatly appreciate it. It’s 25 Forest ST, new britain CT. This would be my first brrrr deal so I really want to do this right! The sellers accepted my offer however, if the math doesn’t make sense I have to pull out and this is where I need your help.

Please help me out! Thank you.

[Michael J. Abel]

Congrats on getting your offer accepted. I would strongly recommend you get to an ARV that you feel confident and comfortable with as quickly as possible. In order to get all your money out ignoring closing costs, your ARV would need to be ~350k assuming a loan at 70% LTV (this is conservative, you maybe able to find 75% LTV). If you are not trying to pull all your money out, then the ARV can be lower. Double check your repair estimates by getting quotes from a couple of different contractors.