2nd BRRRR - Fayetteville, NC

[Joe Prillaman]

For all my Wilmington, NC and Fayetteville NC peeps.

Deal number 2 here we go!!!!!!! Let’s jump right in.

2nd deal was much easier than the 1st. I found this deal on the MLS and it was in much worse shape. I was a little overconfident and didn't really know what I was doing yet and honestly thought this was a VA foreclosure so I threw in an offer. I thought I would be able to back out if the property sucked without penalty so I did very minimal due diligence. I DO NOT RECOMMEND DOING THAT JUST FYI. Turns out this was just a regular listing and my 1st offer got accepted almost immediately.Property address: 5245 Butternut Drive, Fayetteville, NC, 28304

Purchase Price: $50,161Rehab Cost: $21,500

ARV: $97,000

Current Rent: $1000

Vacancy: 7%Property Management: 10%Capital Expenditures: 5%Maintenance: 5%Total Time from purchase to refinance: working on that…

Total cash invested: (will be) $0 Projected Monthly Cash Flow: $152

So turns out when you don’t know what you are doing … you should ask people. Remember that sweet exception called delayed financing we spoke about in my 1st property? Yeah if you are going to do that purchasing a 2nd property is a great way screw that up pretty bad. Luckily my mortgage broker is a boss and was able to save my 1st property but this one I was forced to wait the 6 months to refinance. Finish your 1st property THEN purchase the 2nd property if you want to use delayed financing.

Much more extensive rehab, only thing we did not replace was the HVAC it was basically new. 1st off we converted the home from a 4br/1.5ba to a 4br/2ba, floors, paint, roof, appliances, stuff like that. Photos below!

Turned out great but I learned my lesson. I did much more due diligence on the next 2 properties as I refined my systems. Properties to follow soon…side note BRRRR is epic, cash flow is great but equity ... that's where it's at.