All Forum Posts by: Andrew Valdez

Andrew Valdez ,
I haven't completed a BRRRR strategy yet but my understanding is that when you refinance it's for 75% of the ARV. So in order to get your initial investment back and repeat the process (snowball effect) you would need to purchase the property at an all in price (including repairs) of 75% or less of the ARV. Based on your numbers your not very close. If your purchase plus repairs are at 160k and it was last appraised at 170k you are only buying at a 6% discount. Unless it's been a while since the buyer last had it appraised this doesn't sound like a good opportunity for the BRRRR strategy. Best of luck!

So it appraised in the high 170$ even at 179$ I still understand what you are talking about with the all inclusive needing to have an ARV of 75%. Thank you for your input!

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1700sq ft. Duplex. It rents out for 850$ ea side = $1700 Gross ~~~~CAsh Flo of $588 p/month

This is my first investment property. I'm 21 and super excited but extremely nervous!!

I have it under contract for $150k + Closing Cost($5-7k)[not big fan of the closing cost] so far I have no hard money invested.

During our due diligence we found a lot of moisture damage to the flooring due some leaky sinks and water heater and I personally think neglected maintenance. We just got quoted for $5k for repairs.

but the buyer wants me to go half on the repairs ($2.5k) so my loan now totals 159.5k(pending) but the buyer also said last time he refinanced it got appraised for $170k.

In my reading I feel like I'm not going to have any equity to start the snowball effect.

Is my logic correct? Any suggestions? Comments?

Correct me if needed and Ask if you {want/need} more information

Thank You

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All Forum Posts by: Andrew Valdez

Andrew Valdez has started 3 posts and replied 12 times.

Post: BRRRR Advise

Post: BRRRR Advise