First BRRRR in Hinesville GA

[Andrew Schmidt]

I recently closed on a small 3/2 REO in Hinesville GA.

Asking was 59900. I offered 40k. Got them down to 45k, pending inspections. After inspections I asked for a reduction in price because banks don't like to do any work themselves. Reducing the price further to 40k.

Now I'm talking to a contractor about plaster paint, flooring, new kitchen, siding, new deck. Budgeted 27k for the remodels.

area rents are 850-1100

Comps are 85-125

So far the likelihood of successfully getting the property rented and take out the capital are positive.

Hey, it's free real estate.

[Andrew Schmidt]

Remodeling took for ever and went 10 over budget. There was a lot of interest in the house and it's now rented out. The mortgage broker I've worked with before is ghosting me or out of business. This portion should be interesting as credit seems to be tightening.

40k purchase

80k all in

100k estimated value

Renting for 950$/month, which may be too low.

14% return on cash without financing.