Updated over 5 years ago on . Most recent reply
First BRRRR (well almost) by the numbers
Bought my first investment property last September in Pittsburgh, PA. I reside in San Diego, CA and never set foot in Pittsburgh so it seemed a little weird.
Details:
SFR 4/2 on the MLS
Asking: $50K; Offered: $40K And ultimately agreed and purchased for $44K
Used conventional financing with 20% down
Rehab cost was $36K
Total money in including rehab, down payment, closing costs and holding costs: $55K
Rented 4 months after purchase for $1275
Refinanced into a new 30 year fixed at 4.5% and was able to get $53K cash out after an appraisal of $125K
Currently looking for the next deal to finish out the "Repeat" phase of the BRRRR; hence the almost.
Definitely learned a lot through this process everything from financing to working with contractors to property management companies. Biggest piece for me would be perhaps developing a contractor agreement on my end that could have prevented some hiccups down the road; ultimately the work was done well but drawn out and demands for payment outside of the quoted schedule.
I’m looking to use hard money for my next deal in order to learn the ins and outs of doing so.
Most Popular Reply
@Kevin Wilson that makes sense - appreciate the insight.
Thank you for asking. As a super new investor, I'm not 100% certain at this point. I know I want to buy a multifamily but I'm not sure which market at this point.
My wife and I own a 2-family home in Brooklyn where we reside in one unit and Airbnb the other. We had a tenant the first year, but we were able to nearly triple our income by Airbnb-ing it since.
At the same time, we have friends that bought a vacation home in St. Petersburg FL where their Airbnb income is higher than ours and their mortgage is 30% of ours!
So knowing that some markets could be much more profitable than others, I'm leaning toward conducting a broad nationwide search. But my goal is to learn as much as I can over the next few months to get to a decision around where to invest and whether to do a traditional rental vs. Airbnb.