Inherited house BRRRR deal advice/insight

Inherited house BRRRR deal advice/insight

Investor · Dallas, TX · Member since 2017 · 23 posts · 4 votes
Hello, My family has recently inherited a West Texas home from a relative who passed and it's currently sitting empty and I'm looking to get some advice on doing a BRRRR on it (without the Buy). The house is in rough shape and it's in a rural Texas town. Its a 2 bed 2 Bath about 975 square feet. Right now I have a very very very rough repair estimate of 20k (which I expect to change) with an ARV of 65k. I'd like to receive some insight on the best way to gain access to cash through refinancing the house in order to purchase more properties as I don't have access to a huge amount of funds starting out. Current report shows it cash flowing $174 a month but like I said my numbers are very rough especially in the repair and insurance cost areas. I'll attach the report I generated if anyone would like to poke through them and point out any obvious flaws. Also if anyone has any experience or knows a referral for estimates on renovations in the San Angelo Texas area that would be great as well. Appreciate your time everyone! https://www.biggerpockets.com/brrrr-calc/435377
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  • Investor · La Vernia, TX · Member since 2015 · 1k+ posts · 865 votes
    9y

    Howdy @Austin Suddreth

    We cannot access the link. For the Refinance loan you will typically get 75% LTV. Based on your $65,000 ARV that equals roughly $48,750 for the loan. What is the estimated income? Will you be able to Cash Flow with 50% in expenses and a mortgage payment close to $250?

  • Investor · Dallas, TX · Member since 2017 · 23 posts · 4 votes
    9y
    I've got $590 as my monthly rental income right now. So with the 50 percent rule cash flow is at $113 if I take out 35k in the refinance, although I used 4.5% for my rate just as a guess
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