Power of Real Estate & BRRRR - $38K Cash Out + $1K CashFlow

[Alex Babayev]

In June of 2018 I bought an off market deal in Lilburn,GA that was brought to me by an individual who had a friend that passed away and his wife wanted to get rid of the property. The property looks like a duplex however it is technically considered to be a townhouse because each side is separately deeded. The property was completely neglected and needed a full renovation.

Renovation Items Included:

• New roof
• Exterior/Interior Paint
• New Kitchens (Granite, Backsplash, appliances)
• New Laminate Flooring
• New Bathrooms
• New Wood Fence Around Perimeter

I bought each side for $42,500 x 2 = Total Purchase cost $85,000

Each side is 2BR 2BA 1,225 sq ft

Total renovation cost was $45K for both sides. My all in cost for the property was $130K

I waited the 6 month seasoning period before I went to go get the property refinanced with a traditional 30 year mortgage.

In Dec 2018 property appraised for $240K

I got a 70% LTV Loan even though I could have gotten as much as 75%, I decided not to heavily leverage since I did not want to kill my cash flow.

This transaction shows the power of Real Estate investing and how it can multiply your wealth drastically. I now have no money at all invested in the deal, actually got paid $38K to own the property and still have over $1K of rental cash flow coming in after mortgage payment.

[Alex Babayev]

haha Thanks! Hard to find this in Los Angeles :) @Account Closed