Help me analyze this deal - BRRRR or Flip?

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Dennis M. · Answer

@Derek Sperzel

That’s a whole lot of rehab for a cheap house . You better know what your doing

Derek Sperzel · Answer

@Dennis M. I got a fantastic deal on this property, as-is it is worth twice what I paid for it, and I actually considered wholesaling it for a second.  If you're thinking it must be in a war-zone, you'd be mistaken.  I know the deal is solid, and I'm just looking for feedback on how to create the best return on the opportunity.  It ticks a lot of boxes on our buy & hold criteria list, so we'll likely BRRRR it.  I also believe I can reduce the property taxes by at least $50 per month (currently $208) through an appeal I am filing in the morning.  If successful, that should get me to my $150 CF per month on a leveraged asset.

Peter Aziz · Answer

Looks like an amazing deal to hold in your portfolio forever! How are you getting 3.75% money though?

Derek Sperzel · Answer

@Peter Aziz, I think I agree with you but when I do the refi it takes my CF goes down to  $100 per month, and that is less than I typically shoot for on a financed property (min $150).

I found two different Brokers that would let me buy down to a 3.75 on a 30-year fixed .  That puts my break even at about six and a half years to recoup the buy down. They're hard to find but there are Brokers out there that will go that low.

Derek Sperzel · Answer

@peter aziz, I think I agree with you but when I do the refi it takes my CF goes down to  $100 per month, and that is less than I typically shoot for on a financed property (min $150).

I found two different Brokers that would let me buy down to a 3.75 on a 30-year fixed .  That puts my break even at about six and a half years to recoup the buy down. They're hard to find but there are Brokers out there that will go that low.

Kelvin Tam · Answer

@Derek Sperzel from your spreadsheets, it's pretty clear that you are having a good cashflow there. In my opinion, I would keep it and look for other houses to invest. But the decision is still yours.

Happy investing.

Help me analyze this deal - BRRRR or Flip?

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