Full BRRRR in 9 weeks.

[Alexander Felice]

I've been posting on this forum for years, but this is the first deal I've felt like sharing.

We bought this house about 3 months ago

Purchase price: 38.5K

Rehab: 20K

All in: 58.5K

ARV: 78K

Loan: 58.5K 

Money left in the deal: ZILCH!

Rent: $850

I closed the HUD on March 14th and I closed the refi loan on May 18th. 

I used the delayed financing method to go so fast. If I had waited 6 months I would not have been able to pull out any additional cash so time became very valuable. 

Total process to rehab, place a tenant AND do the underwriting was just under 9 weeks total. 

I also do this entirely long distance from across the country. 

 A few keys to quickness: 

Your contractor should be ready to demo the day you close and own the property

Your lender should be included BEFORE you close on the house so he can make sure the HUD is optimal for extracting all your cash

I put the property up for rent about halfway through rehab, once it starts to have the GLOW of opportunity ;) 

overall it was pretty easy.  

Here are some before pics! This one was just a light rehab so not too exciting. (PS ALWAYS hire a pro photographer!)

AFTER: 

[Alexander Felice]

Originally posted by @Will C.:

@Alexander Felice I thought delayed financing meant you where limited to get back only the purchase price + closing costs? You were able to get your reno money out of the refi it seems. maybe I'm missing something.

house looks great for a quick reno. you must have a great team!

Common misunderstanding I think as I hear that all the time.

The rule is you can pull 75%LTV or 100% HUD whichever is lower.

The guidelines say NOTHING about what those funds itemize out too, it only states 100% of HUD

so load up the HUD! I included a picture of the hud on my blog post for detail. I added my year of insurance costs to upfront as well ;) ;)

I do have a great team, I'm incredibly grateful for them all. Building a team was not luck for me, all done through hard work and hiring lots of idiots, thieves, and disappointments before hand. Team building is a talent like any other, takes diligent practice to get good. Thank you!