Investor · Mechanicsburg, PA · Member since 2017 · 110 posts · 50 votes
Hello BP'ers! Wanted to share this success story with all of you who have guided and inspired me each step of the way as I was dwindling in this uncharted territory. So here is the short of it as it stands around 6 months after I purchased this property -
SFR; 3Bed; 3Bath; 1080Sq. ft.; Ranch home with walk out lower level; 8400 Sq Ft. lot
Acquisition price + Closing costs - $82000 (Bank owned reverse mortgage property so bought it at listed price in April)
Rehab cost - $4300 (Yes, I went overboard with it as initial estimate was only 25k, talk about estimation :))
Total in : $125000
Rented in August 2017 for $1400 (I believe I am getting rent on the higher side for the area, because of the improvements)
Appraisal came in today for refinance at $168000, so essentially I'll be able to clear all the money poured into this! Not considering closing costs for refinance, this amounts to infinite returns!
Needless to say that I am super excited after this roller coaster of a journey....
That is awesome @Amit G.! Thanks for sharing this. I know that it will inspire many new investors to be willing to jump into this game we call real estate. And the pictures look fantastic, you did a great job!
@Amit G. Congratulations! Wow, pictures look great especially for a first project! Couple questions: What would you do differently going forward to create a more realistic estimate of repairs +/- 10%. Had you known it would have been 43k at the outset would you still have done the project?
@Amit G. The reason I love the BRRRR strategy so much is you are able to attract top notch tenants for the area because the property stands above the competition after all of the improvements. Good areas, good houses, and good tenants will always outperform on paper "cash cows"