Chicago Single-Family BRRRR w/Pics & Numbers

[Christopher Malone]

This is my latest rehab that is in the refinance stage of BRRRR. I will begin by stating that the rehab went over budget as I decided to test out more durable materials such as using Life Proof Flooring throughout the entire home excluding the bathroom. Epoxy Grout was used in the bathroom and Kitchen back splash to reduce grout maintenance. A laundry closet was added to remove the washer and dryer from the kitchen, and the entire home was rewired and the electrical service was upgraded as the home seemed to have had the very first breaker box every made. If all goes well with the appraisal during the refinance there will be about $5K left in the investment.

Special thanks to my GC @Robert Leach and his team who did a great job start to finish, and to @Mark Ainley who I can always depend on to help answer the tough questions. 😊 (We had to Killz the ceiling 4 times to stop the tobacco from bleeding through.)

• Single Family
• 3 Beds 1 Bath
• Built on a Slab
• 2 Car Garage
• Short Sale - 2 Months Start to Closing
• Financed with a Hard Money Lender (Lima One Capital)

PURCHASE COSTS:
Purchase Price	$ (46,500.00)
Inspection(s)	$ (400.00)
Appraisal(s)	$ (900.00)
Survey(s)	$ -
Lender Fees/Costs	$ (3,760.90)
Closing Costs	$ (4,204.22)
Other	$ -
Total:	$ (55,765.12)

REHAB COSTS:
Labor (from page 2)	$ (27,400.00)
Materials (from page 2)	$ (17,729.00)
Total:	$ (45,129.00)

Unit Breakdown
Unit 1	$ 1,400

Assuming $125,000 ARV during Refinance

ReFinance Assumptions
LTV	75%
Loan Amt	$93,750
Equity Left	$31,250
Interest Rate	5%
Mortgage (yrs)	30
Mortgage Payment	$ 489.04
Cash Out Refi Return	$ (4,983)

ReFinancing Key Values
Cost/Unit	$ 93,750
Cash On Cash Return	118.31%
Monthly Cash Flow	$ 491
Annual Cash Flow	$ 5,896

Before

After

Thanks for reading, let me know what you

[Christopher Malone]

@Mark Ainley

Great idea! My goal is to have 20 SFR's by 2020. After re-evaluating that goal, I jammed myself up in a couple of areas. First, the start of my real estate journey did not match my destination at the time. Back then the goal was to just get started and I was not prepared out of the gate to scale. Second, I have come to realize that even using the BRRRR method, your capital will eventually run out, especially if you keep fixed CapEx reserves for each property like myself. With that said, 20 SFR's is still the target, but the modified goal is to get better at, and start using creative methods to acquire properties such as seller finance and partnerships. As you recommended, I will get more detailed in the near future and outline timelines on my path to growing my portfolio.