Columbus OH BRRR (interest rates on the rise!)

[Austin Steed]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $79,000

Another INF CoC return BRRR complete!

Purchased price: 79,000
Rehab Cost: 91,000
Appraised value: $250,000

I pulled out 75% LTV so I paid myself $17,500 and the property is rented for $1,050 a door. PITI is just under 1300 a month. Interest rates on cash out refis I am starting to see creep up. I locked in a 4.55% rate with 25 year am. With the way Columbus has been increasing in value I will it does help to hit the infinite returns. On to the next!

What made you interested in investing in this type of deal?

The purchase price and how poor of condition the property was in. With BRRR's the worst the better. Have to get that Cap X for tax season.

How did you find this deal and how did you negotiate it?

In house

How did you finance this deal?

Hard money then a commercial loan.

How did you add value to the deal?

Complete rehab with all new MEPs

What was the outcome?

Cash flow

Lessons learned? Challenges?

Make sure that if you are opening up drywall to have the electricians to make their cut outs as straight as possible. Had a few thousand of extra drywall cost because of all the extra labor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Fund that flip for hard money loans.