Completed BRRRR Staregy

[Kenneth Garrett]

I thought I would share a success story. Bought a 3/1 882 square feet. Small ranch on a crawl space. Offer was a three letter option; Cash, Seller financing, and a combination of seller financing and a down payment. Seller took cash instantly. (Darn it, I offered to much, but numbers work) Bought 85K rehab 15,000. Projected ARV to be 115-120K.

Rent is 1275 - taxes 187 (month) Ins. 38 = 1050 (NOI) P&I 597 = DSCR = 1.76 Received 80% LTV DSCR numbers good. Commercial Loan

Cash Flow $453.  I don't worry about maintenance and vacancy 2 year lease and bank the cash flow.  Pay off property asap.

Rehab:  kitchen, electrical panel, Front stoops, level floor, misc items. Rehab 4 weeks refi took 10 weeks (banks slow process)

No money stuck in 100% refi.

Share your thoughts.