I am new to Bigger Pockets and new to BRRRR. I am looking at a 3bed/2br 1600 sq ft short sale property in Richmond, VA that looks to be a good deal. Asking price is $89,500. I am estimating a $20k rehab/update budget with an after-rehab value of $150k. Rent should be $1200. Running an analysis with the BP calculator shows a +$350 cash flow.
Can anyone advise to the best way to find money for this BRRRR? Is this a discussion board or a marketplace question? (I am not familiar with posting to BP.) What should I be looking at that when I am considering making my offer?
Thanks for any guidance or advice you can give a first timer.
If your numbers are correct, I believe you would be able to pull all your money back out. I recommend talking to small community banks and credit unions. Present your portfolio in a binder, complete with basic facts about your properties, before and after photos, etc. @Brandon Turner did that when refinancing his properties, I believe.
Hi William. I second Dan's advice about local banks. If you'd like a referral to the small business lender I work with feel free to PM me and I'll send over contact info.
A couple of notes: when talking to the lender, you'll want to be able to back up your numbers so be prepared to show how you arrived at your after-repair value, your rehab costs, your holding cost budget, profit margin or income expectations, etc.
Best of luck!