Professional · Canton, MI · Member since 2016 · 296 posts · 230 votes
So I've got a deal under contract now that I'm almost positive will be a true $0-in BRRR in that I can buy then refi and get all my cash back out and maybe even a bit extra. Now, know that I'm a bad landlord because I have no systems in place, this home is a 45 min drive from my house, and I have a short attention span so flipping has satisfied my need for immediate payoff. That said, interest rates are amazing. Home will likely sell for $215k give or take $5k if I list. I'm buying for $162k. Rent would be $1600ish and I have solid credit so should be able to get a great rate.
Stick to the normal m.o. and flip or use this as an opportunity to scale? I change my mind constantly but feel like this could be a good one to reset my strategy on and begin to scale.
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
6y
You'd buy at $162k and then spend on rehab. Then refi based on value of $215k. So you'd have a loan of around $193k? If that's the case rent of $1600 doesn't sound like enough to be worthwhile, unless you have some special circumstances.