Updated almost 4 years ago on . Most recent reply
First BRRR - STR Market
Our very first BRRR. Here are the numbers.
Purchase Price: $375,000
Rehab: $80,000
ARV/final appraisal: $650,000
We decided to take 65% of the ARV on this one. The property is in a short-term vacation rental market and we did a full reno of the interior and also built a pool. The pool was financed at a 3% rate over 20 years. I estimate we will pay it off in 5. If we took 75% ARV we would have covered all expenses + the pool. We purchased the property in May of this year and refi was done in December.