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Updated about 3 years ago,
Why I wish I BRRRR'd My Second Tacoma Fliip
In February another broker/investor came to me with a deal that he wanted to pass on and just take a commission for. This home was a 5 bedroom, 2.5 bath, 2,600 SF home in South Tacoma with a fully finished basement. It was an off-market sale and only a handful of investors were interested. When I walked it, I knew this thing was a home-run and I outbid everyone for the deal. The numbers are below:
Asking Price: $250,000
My offer/contract price: $267,500
Rehab amount: $85,000
Hard Money Loan amount: $332,500
Hold Time: 5 Months
Sold Price: $480,000
These numbers are GREAT! And I walked away with a sizable profit, my largest one so far in my career, however to this day I still regret selling it. This home was in a part of Tacoma that is in the path of appreciation and has a lot of room to grow. It's centrally located and will grow plentiful in equity for years to come! But the bigger issue is that I believe this home could have appraised at $500k, leaving me with about $30-40k in a cashout refinance, and the cashflow would have been $450 a month! For a single family residence that is crazy!
But, lessons learned and either way it's a win-win. Feel free to reach out with any questions that you might have!
- Gervon Simon
- gervon.simon@compass.com