Updated about 3 years ago on . Most recent reply
I either don’t get it or this deal does not make sense to BRRRR
Hello all,
I am a full time firefighter/paramedic and a "part time" which is more like full time real estate investor. I mostly do fix and flips but I am looking to add to my 2 door portfolio of rentals. I have zero, zip , nada experience in the BRRRR method. I did the calculation here on BP and tried other calculators as well and the numbers just do not make sense to me, seems like im complicating this more than i have to. Ao here is the deal, my numbers make sense for a flip but need to figure out if its a good one to keep.
I have purchased a property SHF $150,000.
Rehab will be $29,000 all in ( all cash of my own money)
Holding cost at about $15000 including initial closing etc.
ARV conservative @ $250,000 to high @ $260,000- $270,000
Only loans i am able to obtain at this time unless you guys can recommend something else is a commercial loan at about 6.2% they will cash me out at 80% so roughly finance $200,000 5 year/ amortization at 20 years.
taxes at about $4200 per year and insurance at $900 per year
Rent for this particular property would be at $2,000-$2,200 per month with tenant paying utilities, water, and maintaining grass and snow. I will be self managing for now.
Again, my numbers for a fix and flip make sense but do not for this BRRRR. Sorry to sounds like a complete newby but in this case of the BRRRR, i am. Thanks all help appreciated