Rental Property Investor · San Antonio, TX · Member since 2016 · 87 posts · 31 votes
Hello, i am an investor (newbe) and would like to get some advice on a deal i found in TX from a wholesaler as follows
Contract Purchase price: $10,000 (wholesale fee plus reinstatement fee)
ARV: $106,000
Repairs: $40,000
Property current payoff balance $85,000 ($800/mo)
Rents in the area go for $1,250
My idea is to BRRR basically. Buy it and rehab it with a loan, rent it and refi after about a year. Any advice? Anything that i might be missing or should look at? Any suggestions?
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
9y
Mauricio Ramos Are you saying you want to pay $10000 + $85000+$40000 for a property that has an After Rehab Value (ARV) of $106000?? If so when you are done you will have $135000 in a property that's only worth $106,000!! If I understand that right you will never find a lender to loan you more money than the property is worth. RR
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
9y
Mauricio Ramos Are you saying you want to pay $10000 + $85000+$40000 for a property that has an After Rehab Value (ARV) of $106000?? If so when you are done you will have $135000 in a property that's only worth $106,000!! If I understand that right you will never find a lender to loan you more money than the property is worth. RR