BRRRR strategy for a newbie who jumped in head first

10 Replies

Hello everyone, 

I bid on two separate homes with Auction.com and won both bids. One home is for 22.5K and the other is for 25.5K. I've paid 2.5K EMD for each property. I am scheduled to close the 1st week of October. I plan to use my HELOC to purchase and renovate one of them and refi 6 months later. For the second home, I plan to use a personal loan from USAA to purchase and reno. The ARV for both homes is around 75K fully renovated. I will also use the BRRRR process on this one after 6 months of seasoning.

I am looking for some advice or suggestions on how to calm my nerves considering that I will have to carry the HELOC and personal loan 6 months while waiting on seasoning. I am confident I can rent them both out for 800.00 after renovated. They are both 3/2's in Columbus GA.

This is my first deal and I am shaking in my boots!

@Karam A Tascoe just make sure you should be all in ( purchase and rehab ) no more than $52,000 for each property. Most likely the lender will require 30% equity in each of the property when you refinance them. Lender will lend you 70% of the ARV which is $52,000 roughly.

@Karam A Tascoe what are your reno numbers? Are you confident you will be approved for the refi loans after the seasoning period? Lastly, I operate here in Columbus so shoot me a PM or give me a call to discuss the location of the properties. Just want to make sure they will support you in achieving your goals. - Dave 

@David Goings I will message you my phone number and the addresses so we can talk about it and maybe discuss some other properties as I am focused on Columbus and middle GA. My Reno numbers are solid. My Contractor an I visited both properties and he provided the quote for services and materials. I cat guarantee the Refi numbers its pure speculation based off of comps in the areas and previous sold prices