My First BRRR Deal- Does NOT cash flow- Did I do something wrong?

[Account Closed]

I haven't found much information online about rental properties that didn't cash flow and still are successes. I'm reaching out for your opinion because most of the "non cash flow" opinions by other investors are that you did this deal horribly.

But I don't think that is the case with my situation. Or maybe it is? You tell me!

Bought a duplex on xome auction site for $112,500.

I got a quote from a contractor that it would need $75,000 to bring it up to par with the other homes.

Took a hardmoney loan out for a total of $192,000 (incl. construction loan). Had to pay all of it off in 6 months.

The only money I spent was $14,500 for fees/closing.

6 months is up and I have renters (signed 1 year lease) in there giving me a total of $3200 per month total gross.

I refinanced, paid the hard money loan off and the house appraised at $370,000.

After all said and done, I got 75% ARV from $370K, Paid off the hard money loan and was left with $52,925 in my pocket.

Now the terms are, 30 years and 8.4% interest. (UGH!) No balloons. After 5 years I can refinance with no penalty. I needed to close quickly and the title wasn't quite seasoned at 6 months and this was the best loan term i could find.

So, the duplex profits $3200 per month gross.

Taxes $630 per month

Insurance $162 per month

Maintance fee $320 per month (10%) because this neighborhood is C/D class and I just can't

Water/Sewer $40 per month

Mortgage is $2123.26

They pay electricity.

I pay heat with a set theromostat. oil tank is 275 gallons and at $1.91 per gallon and probably must fill up three times.

My NOI ends up being -$75.26

I bought this place at a steal, what the HECK happened?

Did I get taken advantage of somewhere? or should I see this as good deal OVER TIME?

Appreciation rates in Westchester County NY are good, and rents and homes are always on the rise (until the next bubble burst) 

[Sam Wilson]

"You're sitting on a goldmine trebek!"You still have what? 100k in equity in the property? Punt it. You can use that to set yourself up better on the next deal. It's going to take you an eternity to generate that in rental income- even if it did cash flow. Who cares about appreciation at this point. And who cares about $75 in negative CF per month?! You just made $150k or more on your first deal, paid off a bunch of debt and are not happy with the results? I'll take your version of a mistake everyday. Seriously. Just move on from it. Maybe the rents don't add up- but flipping this one is basic math.