My first rental purchase with BRRRR report

[Brian Knitter]

Hey everyone,

Just refinanced my first BRRRR and ready to re use the $ for another property. Wanted to share my stats as I went Pro this week and building my calculator reports. Let me know what you think!


Purchase Price: $52,000.00  Cash Purchase Closing Costs: $250.00  Estimated Repairs: $1,000.00  Total Project Cost: $53,250.00  

Appraisal/After Repair Value: $75,000.00    Total Cash Needed At Purchase: $53,250.00

Refinance:
Loan Amount: $55,500.00  Loan Fees: $2,500.00  Amortized Over: 15 years  Loan Interest Rate: 3.25%
Monthly P&I: $389.98
Total Cash Invested: $0.00
Income
Rent $820.00
Other $0.00
Total $820.00

Pre-Refinance Expenses Repairs $82.00 (10%) CapEx $82.00 (10%) Insurance $50.00 (6%) Property Taxes $150.00 (18%) Total $364.00 (44%)

Post-Refinance Expenses Repairs $82.00 (10%) CapEx $82.00 (10%) Insurance $50.00 (6%)Property Taxes $150.00 (18%) Total $753.98 (92%

P&I $389.98 (48%)

Gives me this infinite return which I find fascinating.  Not to mention I just refinanced more than the purch price at 75% cash out refi. This stuff works!!   I will say the only reason I felt so comfortable at the refi part, even in these times, is my renter.   They have been there almost 2 years and I just may talk them into a 2 year lease next.   The renter is the real asset.   @JoeAsamoah

[Brian Knitter]

Hi Barry. I am in the process of refinancing now. Its been about 20 months since the purchase and I struggled with the refi for a bit. Loved the cash flow. But then realized the 10% ROI vs the INFINITE return. I will not have any of my $ left in this deal. The light bulb turned on and I tapped into the BRRRR strategy. Time to reuse the refi cash for opportunity. I just bought another SFH and I have a ZOOM inspection today.