Bought Oct 2020 today Feb 2021 (4 Months Total)completed a successful BRRRR

What’s that?! Read below

I paid $78,000 for it. Property was outdated and distressed. It needed a full revamp to bring it to 2021 standards.

New: Roof, kitchen, bathroom, flooring, appliances, HVAC, plumbing, electrical etc.

Originally the property was a 2BR 1BA however I stole some space from the living room to add an additional bedroom.

I knew I would need that additional bedroom when I went to do a refinance and the appraisal would boost my value if it was a 3BR instead of a 2BR

Total renovations cost me $40K

I got the property rented out for $1,285/month

Let’s Recap $78K purchase + $40K renovation = $118K Total all in cost + private lender costs

oh by the way I didn’t use any of my own money 💰 a private lender funded the entire purchase price for me! Oh and He agreed for me not to pay him any interest until after I refinanced the property so I had no expenses while I was in renovation mode except for the renovation costs labor and materials.

Private Lender $80,000 Loan at 10% annual interest = $666/monthly payment x 4 months I used the money = $2,666 interest I paid back to my mender so now my all in cost is $118K + $2.6K = $120,600 all in

I did a cash out refinance property appraised for $185,000 ( wow that’s $55K in instant equity 🤩)

Lender offered me up to 75% LTV $138,750 I could pull out but in order to get maximum monthly Cashflow I decided to only borrow $127,500 against the property

Now remember I am all in $120,600 and now at the closing table I am getting back $127,500

Wait a minute! I am walking away with $6900 in my pocket!! I am getting paid to own a house!! Yes ladies and gentlemen that is possible

Research BRRRR method

Buy, Repair, Rent Out, Refinance, Repeat

This is how you create infinite returns and how you own houses with $0 of your own money 💵

To summarize

Mortgage Balance $127,500

30YR Mortgage 4.37% interest

Monthly payment including Taxes & Insurance = $750

Rent $1,285 - $750 = $535 Net Cashflow in my pocket monthly

Remember I have $0 of my own money invested in the deal!

Time to go look for my next BRRRR deal! Talk soon ✌️ 🙏