A perfect BRRRR without Cashflow is still worth it

[Daniel Tanasa]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $161,000

I bought this property out of the MLS. It's been sitting on market for over 80 days. Was listed for 240k but it needed a bit of cleaning and touch ups for the messy rehab that was done. I negotiated it down to 161k cash. Closed with hard money. Cleaned and painted it for 5k. ARV came back at 255k, I refinanced and pulled all my money out. Is rented for 1800 and is just breaking even. But I got 75k in equity in the deal for 0$ out of pocket. So I still count it as a great deal.

[Austin McDonald]

Hey Daniel! Learning/aspiring RE investor here...I'm struggling to see how you were able to be out of the deal with 75k in equity with no $ out of pocket? 

What LTV for your refinance? Even at 90%, wouldn't that only be 230k to pay off the 166k loan...64k (without any closing costs). What am I overlooking?

P.S I hope this doesn't come off as insulting, just trying to learn!