BRRR strategy

[Aron Cohen]

I wanted to share my recent success story following @Brandon Turner BRRR strategy. We purchased 4 single homes as a package deal that had some distress along with squatters. We dealt with the squatters and got right to work on the rehab. The original purchase price was 105,000 for all 4 homes. The cost per home came out to be about 27,000 with closing to be 3,500 per home which includes purchase closing and refi closing. Total rehab costs were 60,000. Our first appraisal came in at 81,000, 2nd came in at 125,000 and 3rd came in at 70,000. We are still waiting on the last home's appraisal which we project to be close to 100,000 but with just those three appraisals we are able to cash out $206,000. We have 3 tenants already in place that average $1300 per home. This strategy is allowing us to continue to acquire homes monthly with all of our capital plus a profit from the BRRR strategy. I want to thank everyone who has given feedback and comments on BRRR and especially @Brandon Turner for introducing me to this strategy. Thank you and good luck investing!!

[Aron Cohen]

@Robbie A. the BRRR stands for Buy , repair, rent, refinance and repeat. The homes were bought with cash (not with a bank loan/mortgage loan). Therefore there is equity in the property before you rehab and fix it up. After buying for cash we fixed the property up to the higher value of neighboring properties. The ARV (after repair value) is higher than the purchase cost and cost to repair the home. The bank will then appraise the home and give you a loan (LTV) loan to value usually 70 to 75% in which you can do the process again. I hope that that helps.