My First BRRRR, 0 down
--Currently two in a half week in rehab as of writing this--
After having success with my first 4plex and 2/br home rentals I was ready to find my next deal. My original plan was to purchase a property at the County Tax auction, which didn't turn up any good deals for me...So I had this 30k 3 year loan on 9.6% interest rate I was setting on (My fund still depleted my my first deal I chose to borrow in order not to miss out on the tax auction opportunity...). I had two choices, find a deal fast, or pay the money back and eat the $1100 origination fee. I found a small 1 bedroom house for sale in a decent part of Tulsa, OK. The price had just been reduced to my affordable range. I estimated I would have enough to purchase and fully rehab. I'm on week two of rehab and hope to be done in another 2 weeks. Timeline is good, but I ran into a few more problem than I initially planned for, such as bathtub and surround needing replaced, 2000 nails in sheetrock (I don't no why...), rotting wood under front door, horrible texture on walls on top of wallpaper that made prepping the walls extremely tedious, subflooring replace in bathroom and hall, windows and seals needing replaced (new that), and detached garage siding totally rotted.
Numbers: First noticed when seller moved asking price to 26.5k (from original 34k). House is only 600 sq ft, and single bedroom.
- Purchase $23,000
- repairs $6,500 (so far at $5,600, doing everything myself but windows and front door replace)
- After repair Value hoping for $35,000-38,00
- Rent $600
- Taxes $300
My game plan is to finish up this rehab (which I've learned a massive amount!) and refinance under a 30 year for $25,000. This should leave me cash flowing around $150 per month. I'll be all in according to my BRRRR calculator $6,800. So, it was no money down, but unless refinance for higher it will end up costing a bit. Since my cash reserves are building up I'm in a position I can afford the $6,800 and in return have a higher cash flow from this property.--Currently two in a half week in rehab as of writing this--
After having success with my first 4plex and 2/br home rentals I was ready to find my next deal. My original plan was to purchase a property at the County Tax auction, which didn't turn up any good deals for me...So I had this 30k 3 year loan on 9.6% interest rate I was setting on (My fund still depleted my my first deal I chose to borrow in order not to miss out on the tax auction opportunity...). I had two choices, find a deal fast, or pay the money back and eat the $1100 origination fee. I found a small 1 bedroom house for sale in a decent part of Tulsa, OK. The price had just been reduced to my affordable range. I estimated I would have enough to purchase and fully rehab. I'm on week two of rehab and hope to be done in another 2 weeks. Timeline is good, but I ran into a few more problem than I initially planned for, such as bathtub and surround needing replaced, 2000 nails in sheetrock (I don't no why...), rotting wood under front door, horrible texture on walls on top of wallpaper that made prepping the walls extremely tedious, subflooring replace in bathroom and hall, windows and seals needing replaced (new that), and detached garage siding totally rotted.
Numbers: First noticed when seller moved asking price to 26.5k (from original 34k). House is only 600 sq ft, and single bedroom.
- Purchase $23,000
- repairs $6,500 (so far at $5,600, doing everything myself but windows and front door replace)
- After repair Value hoping for $35,000-38,000
- Rent $600
- Taxes $300
My game plan is to finish up this rehab (which I've learned a massive amount!) and refinance under a 30 year for $25,000. This should leave me cash flowing around $150 per month. I'll be all in according to my BRRRR calculator $6,800. So, it was no money down, but unless refinance for higher it will end up costing a bit. Since my cash reserves are building up I'm in a position I can afford the $6,800 and in return have a higher cash flow from this property.--Currently two in a half week in rehab as of writing this--
After having success with my first 4plex and 2/br home rentals I was ready to find my next deal. My original plan was to purchase a property at the County Tax auction, which didn't turn up any good deals for me...So I had this 30k 3 year loan on 9.6% interest rate I was setting on (My fund still depleted my my first deal I chose to borrow in order not to miss out on the tax auction opportunity...). I had two choices, find a deal fast, or pay the money back and eat the $1100 origination fee. I found a small 1 bedroom house for sale in a decent part of Tulsa, OK. The price had just been reduced to my affordable range. I estimated I would have enough to purchase and fully rehab. I'm on week two of rehab and hope to be done in another 2 weeks. Timeline is good, but I ran into a few more problem than I initially planned for, such as bathtub and surround needing replaced, 2000 nails in sheetrock (I don't no why...), rotting wood under front door, horrible texture on walls on top of wallpaper that made prepping the walls extremely tedious, subflooring replace in bathroom and hall, windows and seals needing replaced (new that), and detached garage siding totally rotted.
Numbers: First noticed when seller moved asking price to 26.5k (from original 34k). House is only 600 sq ft, and single bedroom.
- Purchase $23,000
- repairs $6,500 (so far at $5,600, doing everything myself but windows and front door replace)
- After repair Value hoping for $35,000-38,000
- Rent $600
- Taxes $300
My game plan is to finish up this rehab (which I've learned a massive amount!) and refinance under a 30 year for $25,000. This should leave me cash flowing around $150 per month. I'll be all in according to my BRRRR calculator $6,800. So, it was no money down, but unless refinance for higher it will end up costing a bit. Since my cash reserves are building up I'm in a position I can afford the $6,800 and in return have a higher cash flow from this property.