So I am not one to brag, but I always see people posting about how to invest with no money. I have been flipping in Austin and San Antonio for a while, and what I'm here to tell you is maybe you can or maybe you can't, but I BRRRR'd a house in San Antonio and not only have no money tied up in it anymore, but I put $5,000 in my pocket for my trouble. Now I am cashflowing $200/month with a $0.00 investment. Granted, I had money tied up in it until the last refinance, but I got it all back and then some. On to the next one. Here's the numbers:
Single family house in NE San Antonio. 1,456 square feet, 3 bed 2.5 bath
Purchase price: $105,000
Hard money loan: $112,500
Cash out of pocket (From HUD stmt):
- $12,500 (down payment)
- $2,250 (points)
- $385 (lender fees)
- $892.50 (title fees)
- $1,320 (insurance)
- -$2,001.34 (credit for unpaid taxes)
Actual rehab cost: $19,678.12
Hold time until rehab and refinance complete: 98 days
Interest expense: $3,020.55
Refinance loan terms: 30 year adjustable rate mortgage at 5.75% interest fixed for 5 years at 85% LTV and 1 point.
Appraised value: $164,500
Cash-out refi amount: $139,825
Cash back in my pocket after lender fees, title fees, down payment, interest expense, insurance, etc are all accounted for: $5,389.50
Now the place is rented for $1,200 a month and I figure I'll pocket about $200-$300 a month after expenses and mortgage payments and in the end, no money tied up in the deal! Big shout out to @Jason Hirko w/ Corridor Funding in Austin for the first loan and helping me find the property!
@Jack Henry Congrats! Glad to hear everything went according to plan. On to the next one!
Thanks for sharing that and congratulations... even for knowing your numbers as intimately as you do (not every investor does). I'm going to share this post with a friend of mine looking to invest in a buy and hold in your area.
Congrats! Can you share who you used to refi out of the HML? Feel free to PM me or send an email to the address below.
David, Tim at Corridor funding did the long-term refi for me as well.
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