BRRR - success story
So I have a successful BRRR stories, but there were a handful of mistakes made which is why I am posting to see if you can point them out and learn some lessons.
I bought said property in 2014. It was a short sale. I knew that my end goal was a buy and hold with a cash out refinance, but I made did a lot of winging things, making uncertain decision, etc that probably cost me some money, but luckily in the end everything worked out.
I didnt have any cash or credit to buy anything on my own, so I found a property and brought in a money partner. We purchased the property with HIS cash. Both of our names went on the deed. I paid him interest only payments for 18 until I was finally able to refinance and remove him from the deed.
Purchase price plus closing costs: 75k
Rental income during those 18 months (minus taxes, ins vacancies and repairs): 10,500
Interest only payments for 18 months: 8100
Appraised value at time of refi: 150k
Re-fi loan amount including closing costs: 80k
So basically, I have no money into the deal, I was able to do a few repairs and I walked away with a few dollars in my pocket.