BRRRR Gone SO Right!

[Danté Belmonte]

BRRRR deal gone so right!

Single Family

4 Bedrooms, 2 Full Bathrooms at purchase

Asking: $75,000

Purchase Price: $42,500 Cash

Rehab: $70,000

Closing & Holding Cost: $5,000

Total Cost: $117,500

Projected Appraisal: $125,000

Cash-Out Refinance LTV: 85% ($106,250) leaving $11,250 in the deal

Appraisal: $142,000

NEW Cash-Out Refinance LTV: 85% ($120,700) taking out all capital invested as well as pocketing $3,200.

5 Bedrooms, 2 Full Baths After renovation

Cash flows $600 per month

This deal turned out to be great thanks to that extra appraisal amount and my conservative ARV I was shooting for. Income approach came in at $144,000!

[Danté Belmonte]

@Megan Brooks it was on the MLS. I am also an agent and noticed it was on there for awhile (over 100 days) and I own another property on the same street. I went in all cash and no contingency's. The home was vacant and the owner was just sitting there paying taxes, insurance and possibly a mortgage and knew this was the time to get rid of it