Accidental $291k cashout refinance... Biggest BRRRR Deal yet!

[David Zheng]

Hi BP!

Just wanted to share one of the most exciting things that "accidentally" happened to me.

Back in Sept, 2016 I was just 9 months into real estate investing and I was browsing Zillow for fun as I usually do. Managed to catch a 3 unit, 3bed1bath/unit going for 260k in an area I like to invest it. Scheduled the showing within a minute and made an offer within an hour of seeing the listing at 230k! Had to go through an HML but it was a deal I couldn't pass up. Closed on Oct, 2016 with a 11% 12 month interest only loan with 80k down (ick!)

Skipped Thanksgiving, Christmas, New Years, and my birthday and went through consistent 80-90 hour work weeks (I have a full time too) and probably 5000 headaches and screaming sessions to get the whole thing rehabbed and ready by the end of January, 2017. Also added a bedroom to make it 4b1b units.

Here are some numbers:

Purchase- 230,000
Rehab- 115,000
Closing/Holding Costs- 17,900

=$362,900
Actual cash invested - $109,900
Existing Debt Obligation- $253,000

I'm renting it out for 2700/unit or 8100/month total

Now I thought this thing was going to appraise for 400-500k originally. Silly me not knowing anything apparently...

Because the Appraisal came back at a whopping $680,000!!!! and the bank is willing to loan up to 80%!!
When I got the phone call, I was in shock because that essentially puts me at pulling $544,000 in straight cash and netting $291,000 after I pay off the HML!
After this refinance, I should still be cashflowing at least $2,000 a month after PITI and expenses too!

Gonna show my soft side and admit I cried like a baby because I started to reminisce on all the sacrifices and pain I went through with this building. It really has been one of the most rewarding moments of my 26 years of life and as an Asian with high expectation parents, I was glad I had something to prove my worth to them.

So what now? Downpayment on a 1.5 million dream beach house I've always wanted? A Lambo because I adore those cars? Quit my job? Go on vacation at least?
nope.

 I already had my eyes set on another apartment building and will be throwing my money there as well as another primary since I just rented out mine recently.

Just wanted to share this wall of post in the hopes of finding like minded investors, inspiring others, and as a big thank you to the BP Family for everything!

Best Community ever :)