Investor · Washington D.C. Metro area · Member since 2020 · 13 posts · 7 votes
I am currently analyzing 2 remote rehab opportunities (out of state) and would like to make sure I am taking into account all factors. This will be my first rehab, I have experience buying turnkey rentals but never did a BRRR.
Here are the numbers for one of them
Off-market price purchase price 40k,
estimated rehab cost 30k.
Market rent in the area $900
ARV $90-100k
What other metrics should I be looking at? Does this look like a good deal?
@Stephanie Assi - make sure you factor in all of your closing costs, holding costs, any fees for money/loans including both for the initial hard/private money costs as well as the cost to do the refinance part. Also keep in mind you will have to pay for the utilities during the rehab, and if you will be using a PM roughly one months rent to pay for the initial placement.
@Chris Bodden got it! Also, dont forget to factor in resale costs such as Real Estate agent fees, sales tax (example MA is $4.56 for ever $1,000 it was sold for), and lawyer fees.