All Forum Posts by: Nathan Furlow

Great. Thank you for that info. It feels like that the decision to add would be well worth the investment for monthly income but also my ability to sell later. 

Thanks Patrick for response and feedback. To be clear, the ARV is $215k and even if the rent was 1800-1900 the math seems to be favorable to add. Is that fair?

I am using the Rentometer average rate plugging in the difference between the rates. I did learn from comps as far as ARV its fairy negligible in value but obviously more appealing to buyers. I certainly thought the same thing and was very surprised.

I am fairly new to the BRRR method but currently rehabbing a 3bd/1ba (1189sq ft) I am going to share all my numbers and would love opinions from experienced investors on what you would do.

- Purchase Price $38,450

-Full Rehab $75k (roof, interior/exterior paint, new kitchen, new bath, new floor, new appliance)

- Add full bath $25k (88 sq ft) is the option/decision

As far as cash flow, here is are the two options....

- 3/1 would be... Total Investment for this option is $113,450

- $1350/monthly or $16,200/annual with all annual expenses totaling $15,614 with positive cash flow of $586 (7% CoC Return). My cash Refi at 60% LTV would be $105k which would leave 8450 investment in house.... keeping house as is not adding bath is Cash on Cash Return of 7%.

3/2 would be...Total investment for this option is $138,450

- $2150/monthly or $25,800/annual with all annual expenses totaling $17,344 with positive cash flow of $6652 (70% CoC Return) .My Cash Refi at 60% LTV would be $129k which would leave a $9,450k investment in house.. adding a new bath would be a Cash on Cash Return of 70%. 

Because of the increased rent from having 3/2 vs 3/1 of $800 per month with added rehab cost of $25k, my break even is 2.6 years. This seems like a no brainer but would love some additional input from more experienced investors. What am i missing? Thanks so much and look forward to the feedback.