Might have messed up the BRRRR on my first property
Hey All!
I know your time is valuable so I’ll cut to the chase. I’m investing locally in northern NJ so homes are very expensive, but it’s a market I’m most familiar with. In September I bought a 4bed 2bath multi-family for $390k, and I put 20% down (~$78k). Seller paid closing costs. It appraised for $420k while still under contract. Projected net profit comes to about $500/mo fully rented out.
I spent about $10,000 on relatively light renovations for the walls, floors, and windows (60% contracted, 40% sweat equity). I’m planning to have the second unit ready for tenants by spring. I inherited tenants on the first floor unit and they are great people.
My worry is that I actually won’t have enough equity in the property to recoup most of my capital back to buy the next one anytime soon. I believe I was way too excited thinking that I could be getting a 2-fam at a $30,000 discount. But in reality $390k is only about 93% of the appraised value of $420k (before my upgrades).
What do you guys think are my options at this point? Is refinancing still possible after 5 months? Thanks in advance.