Just completed our first rehab!

[Jonathan Bonck]

This is our first full rehab. We are trying to use the BRRRR strategy. So far we have bought, rehab, and its on the market for renting. Then we will refinance after 6 months and repeat!!

This is in the Southeast area of Houston, TX. 10 mins from where the Houston Texans play at NRG stadium and 10 mins from the University of Houston.

We found this property on the MLS and were able to make a low offer and negotiate further until we got the right purchase price.

We raised $75K from a close relative with a promissory note of 10% annualized interest, which will only be 5% after refinancing in 6 months.

It took 6.5 weeks to rehab. Everything was completely remodeled.

This was a 3 bed, 1 full, 1 half. We turned it into a 5 bed, 1 full, 1 bath. Turned formal dinning room into a bedroom because this market area is not a formal dining room market. Then the back room was massive and we split it into two rooms an added closets. 

Purchase Price: $40K

Rehab: $35K

ARV: $110K

Rent: $1400/month

Cash flow: $450/month

If we cash out refi at 6 months we should be able to pull out $82,500 to pay back the principal and interest on the private capital we raised. 

Cash flow is after saving for all expenses ( capex, maintenance, vacancy, insurance, etc.)

Pics below:

[Andrew K.]

Good job with the rehab Jonathan Bonck , the place looks great. It's frustrating to hear about the appraisal, but it's awesome you were able to pull out most of the capital.

I'm sure the next deal will be even better!

Keep us posted.

-Andrew