Deal Diary: Avondale 2 unit BRRR (house hack)
BRRR is a great way to grow your portfolio. What you do is rehab and then cash out refinance after rehabbing either all or a majority of the funds to help finance your next investment. I sold this client their last deal 7/14/20 and we already less then a year later have another deal under contract, this time a 3 unit nearby.
Deal: Large 2 unit in Avondale. Was very dated inside with wood paneling on the walls and the ugly drop ceiling you see in an old dentist office haha with negotiating we got it for $432,500.
Rehab: Lots of new drywall and gut rehab the kitchen/bathrooms. Budget: confidential but was low enough that client was able to pull out majority of their money invested on refinance as well as create significant equity.
Financing: Cash out refinance into a conventional loan. The inital financing was FHA 203K which I usually do not like using as the costs can get crazy but we were able to make it work being a 2 unit and keeping it relatively cosmetic. (not changing layout, hvac system, etc.)
I also did a BRRR on my personal 4 unit house hack and strongly recommend the strategy to all investors.
Before:
After:
Doggo not included ;)