Cash flowing rental in San Antonio PLUS $$$ in my pocket!!
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
Rehab; $20,000
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)
Total: $15,346.16
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!