BRRR - success story

[Nicole Clemens]

So I have a successful BRRR stories, but there were a handful of mistakes made which is why I am posting to see if you can point them out and learn some lessons.

I bought said property in 2014.  It was a short sale.  I knew that my end goal was a buy and hold with a cash out refinance, but I made did a lot of winging things, making uncertain decision, etc that probably cost me some money, but luckily in the end everything worked out.  

I didnt have any cash or credit to buy anything on my own, so I found a property and brought in a money partner.  We purchased the property with HIS cash.  Both of our names went on the deed.  I paid him interest only payments for 18 until I was finally able to refinance and remove him from the deed. 

Purchase price plus closing costs:  75k

Rental income during those 18 months (minus taxes, ins vacancies and repairs):   10,500

Interest only payments for 18 months:  8100

Appraised value at time of refi:  150k

Re-fi loan amount including closing costs:  80k

So basically, I have no money into the deal, I was able to do a few repairs and I walked away with a few dollars in my pocket.  

[David Crutcher Jr.]

Oh & congratulations too!!!!