First deal, first BRRR

[Isaiah Walls]

Hey BP, this is my first post on the forums. This is also my first completed project. In 2018, I purchased a 2bed-1bath duplex for $106k with a 10% down portfolio bank loan. Rehab was $8k, and I moved into one of the units. I rented the other unit for $835/mo. I then rezoned the land to commercial, this allowed for 3-4 units on the parcel. I used $110k HELOC and cash invested by my parents and sibling to fund the construction of 2 more units. These rented for $1,000/mo per side. I got a 20 year commercial loan 3.5% interest, with a 5 year arm. They gave me 75% LTV of the appraised value. It appraised for 300k, so I could refinance $225k.

Loan for units 1-2: 92k

Rehab: 8k

Loan for units 3-4: 110k

Both Closing: 10k

$225k LTV - $220k Loan = +$5k after refinance

I didn’t calculate holding costs due to the mortgage being paid by unit 1 since purchase. The current mortgage is 1416/mo, apt. 2-4 rent for $2835/mo (*still live in apt. 1)

I would appreciate any feedback on anything you feel I could improve on!