Finally Found a BRRRR deal now what....?
Hey BP,
My names Jesse and this is my first post.
I finally after looking at countless properties, crunching numbers, have found a deal that is a BRRRR, at least I think so.
It's a SFH 4bd/3ba 2600 sqft
Good news:
nice part of town
good schools
i think i can get the property for 150-160k
ARV is probably 300k based on other houses nearby but i have no experience so to be conservative lets say 250k ARV
rentometer says average rent for that is 2k, which is $800 over a refimortgage $1200: 75% LTV of 250k
great credit
Bad news:
I've only ever bought one house that i'm living in now, last April.
Very little funds currently
newbie panic
rehabs needed:
add back deck
replace water heater
inside drywall
inside paint
outside paint
replace kitchen appliances
paint kitchen cabinets
replace few interior doors
some bedrooms need carpet or Hardwood floor.
wanted based on budget
finish basement
driveway.
Now that I found the first BRRRR property that i've come across after 6 months because it seems like everyone does something to fix and flip and i haven't met my savings goal to get my skin in the game idk what to do. i don't want to let the deal just slide by, i don't have enough cash saved to get a hard money loan. i was planning on going to two local REIA at the end of the month but someone will probably snap it up by then. The only thing i can think of is to try and find a partner but haven't met anyone that is in the business yet other then people that i came into contact when buying my residence, banker and real estate agent.
I don't think finding the money is hard. i could ask to borrow some from family and pay them back to get the brrrr loan, from lending one.
as i'm writing this down things are getting more clear in my mind. I guess what i want to ask is what the normal order of operations?
Get money for a brrrr loan
get the loan
talk to the seller get a good deal
call in contractors and get quotes for all the work
release the job to one of the contractor(s)
contractors finish
Find and screen a tenant (no real direction on that other then craiglist/zillow/redfin ads )
refi into a regular mortgage
setup payment receiving system
keep tenant happy
done? start breathing again?