Power of Real Estate & BRRRR - $38K Cash Out + $1K CashFlow
In June of 2018 I bought an off market deal in Lilburn,GA that was brought to me by an individual who had a friend that passed away and his wife wanted to get rid of the property. The property looks like a duplex however it is technically considered to be a townhouse because each side is separately deeded. The property was completely neglected and needed a full renovation.
Renovation Items Included:
- New roof
- Exterior/Interior Paint
- New Kitchens (Granite, Backsplash, appliances)
- New Laminate Flooring
- New Bathrooms
- New Wood Fence Around Perimeter
I bought each side for $42,500 x 2 = Total Purchase cost $85,000
Each side is 2BR 2BA 1,225 sq ft
Total renovation cost was $45K for both sides. My all in cost for the property was $130K
I waited the 6 month seasoning period before I went to go get the property refinanced with a traditional 30 year mortgage.
In Dec 2018 property appraised for $240K
I got a 70% LTV Loan even though I could have gotten as much as 75%, I decided not to heavily leverage since I did not want to kill my cash flow.
This transaction shows the power of Real Estate investing and how it can multiply your wealth drastically. I now have no money at all invested in the deal, actually got paid $38K to own the property and still have over $1K of rental cash flow coming in after mortgage payment.