BRRRR Testimony Part IV

[Brian Tome]

We bought this little 2 bedroom 1 bath house in Elkton for $50K in 2019. It was in need of a complete rehab and we put another $50K into it before renting it to a nice young couple in September 2019. After renovation value was appraised at $128K in August 2019. Our tenants take excellent care of the property and it has cash flowed around $100/month (on a 15 year note with a 10% reserve) since then.

On the refinance we were not able to get all our money back out. We left about $10K in the deal, which I didn't like. However, cash flowing $100/mo. it still produced an 12% return on investment, so we kept it and tried to do better on the next one.

Fast forward to today and the house appraised at $203K. After we refinance and put it on a 30 year note, it will cash flow about $300/month (without ever raising the rent), put $60K cash in our pocket (to reinvest), and we will still have $50K in equity in a property that we only invested $10K into - not to mention the tax benefits we gain from depreciation.

BOOM!