Birmingham BRRRR full recycle of funds

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Birmingham BRRRR full recycle of funds

Jordan Wolff
Investor · Newport Beach, CA · Member since 2022 · 12 posts · 7 votes

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $49,900
Cash invested: $22,200

BRRRR Buy and hold.

Address: 2643 16th Street Birmingham Alabama 35208
Purchase Price: $49,900
Rehab Cost: $22,200.00
Current Home Specs: 3 Bed 1 Bath
After Rehab Specs: 3 Bed 2 Bathroom
After Rehab Value: $145,000.00 (confirmed)
Conservative S8 Rent: $1,275
Purchase out of pocket: $9,691
PML Carry: $833 x 5 months
Mortgage + expenses ~1000/m
Conservative Cashflow: $275

more photos to come

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

PML

How did you add value to the deal?

3:1 to 3:2

Lessons learned? Challenges?

PML can be too costly at times. Will avoid if possible in future deals or find a more reasonable option.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not at the moment

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  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    1y

    Awesome to see the BRRRR method play out. So you essentially bought at 33% of the ARV. That's wild.

    What's the exit strategy? How's the location? 

    0Reply
    • Jordan Wolff
      OP
      Investor · Newport Beach, CA · Member since 2022 · 12 posts · 7 votes
      1y
      Quote from @Jeremy Horton:

      Awesome to see the BRRRR method play out. So you essentially bought at 33% of the ARV. That's wild.

      What's the exit strategy? How's the location? 


       Buy and hold long term strategy for me. Location isn't the best tbh(most avoid the zip code but there's some pockets that are decent) I will pull the max out (~15k and a 108k mortgage) cashflow will be sub 200/m but that will obviously grow and 7-10 years looking at 600-700 monthly cashflow with annual increases.

      1Reply
  • Brett Chandler
    Lender · Sarasota FL · Member since 2025 · 27 posts · 6 votes
    1y

    PML is a better option when weighed against a full cash outlay. It really shines when you expend the same on a full cash deal, and instead leverage that cash to get 3 deals done with a little less outlay.

    0Reply
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