We have already purchased the property. When I ran the initial numbers everything looked good. Since then things have changed. We purchased with $133,000 mortgage and a $120,000 rehab loan. Both at 8%. In the first two weeks, Permits, and the demo have been completed and new drywall, electrical, and plumbing have already been installed.
During the Rehab they tore off the ceiling and found that the roof needs work(estimated at 18,500) that was not in the original plans. Also It was a single boiler originally in the building and to up the resale value we decided to put in separate heat and air for both units. (we spent 11K on this). This is why I upped the value for the rehab to 150K in the report. We purchased trying to do a brrrrr. but with the added expenses when we cash out We will be paying back so much in loans that we will not have the downpayment for the next property. Any advice as what to do at this point? Should we switch strategy and sell, should we hold on to it and just use as extra income, or should we just try brrrr and buy a smaller property next time?
This is our first investment property and I was told to put in property management for mowing lawns shoveling snow and added owner expenses.
