First Two BRRR Deals Successfully Completed!!
Hey guys!
I finally just completed my first two Cash out Refinances on two properties I purchased last year! Below are the numbers
House #1(Cash Buy)
Purchase Price: $20,500
Rehab and Holding Costs : $30,000
Rent: $1000/month. Tenant pays everything
Appraised Value : $86,000
House #2 (Cash Buy)
Purchase Price: $8,000
Rehab and Holding Costs : $1,500
Rent: $750/month. Tenant pays everything
Appraised Value: $40,000 (Appraiser screwed me by using foreclosures as comps. I wasn't happy)
I got to deposit the biggest check I've ever received on Friday and it was a pretty awesome feeling. I have 3 more properties that I own free and clear, but I'm working on upgrading them before Refinancing them.
My plan from here is to use some of the money to upgrade my other 3 properties so that they'll appraise for the max value. The rest will be spent on acquiring more deals. I've currently got a 10 unit deal (2 4plex and duplex), a 8 unit deal (5 plex and duplex) and several SFH flips in negotiation, so the timing couldn't get better. I'm actively searching for either a Private lender or HML to work with me to grow my business, so if anyone could shoot any referrals my way, it would be GREATLY appreciated!
Anyways, just wanted to share my success with the BRRR method, with the hopes that it would motivate new investors to get off the fence and jump it. It really does work!
Happy investing everyone!