Updated over 6 years ago on . Most recent reply
Atlanta, Georgia 2 BRRRRs in 41 days (original post got deleted)
These are the two BRRRRs we executed a month ago.
I have attached screen-shots of the BRRRR analyzer we use in our due diligence below. If anyone is planning to BRRRR and have questions about the process, I will be happy to share what I know and have learned.
Although, @Ashish Acharya and I am still looking to do more BRRRRs, we are focusing more on analyzing/underwriting small apartment complexes (Purchase Price <$1.2M) right now and plan to purchase one within next 6 months. Looking for partners and investors to buy the first apartment with us. Let's connect.
PROPERTY SUMMARY
| Property | Florida Heights, Atlanta | Westview, Atlanta |
| B/BA | 4/2 | 3/1 |
| Sq Ft | 1,980 | 1,135 |
| Built | 2005 | 1948 |
| Asking Price | $ 99,000 | $ 99,000 |
| Source | Local Wholesaler | Local Wholesaler |
| Occupancy | Tenanted | Tenanted |
| Current Rent | $1,030 | $865 |
DUE DILIGENCE
| Exit Strategy: Buy & Hold | ||
| Pro-Forma ARV (as-is) | $145,000 | $140,000 |
| Pro-Forma Rent | $1,400 | $1,200 |
| Rehab for Buy & Hold | $15,000 | $10,000 |
| Exit Strategy: Flip | ||
| Pro-Forma ARV (Flip) | $210,000 | $390,000 |
| Rehab for Buy & Hold | $50,000 | 140,000 |
CASH CLOSE
| Closed within | 30 Days | 10 Days |
| Close Date | 1/11/2019 | 1/11/2019 |
| Contract Price* | $ 98,000 | $ 99,000 |
| Adjustments (Taxs, Pro-rated rent and deposits )* | $ (1,416) | $ (1,201) |
| Closing Cost* | $ 1,005 | $ 1,369 |
| Adjusted Purchase Price* | $ 97,589 | $ 99,168 |
| * Per HUD Statement |
REHAB PRIOR TO APPRAISAL
| Handyman | $2,230 | $6,025 |
| Gutter | $250 | $1,150 |
| Appraisal | $695 | $695 |
| Plumbing | $0 | 750 |
| Cleaning | 0 | 125 |
| Total Rehab Cost | $3,175 | $8,745 |
MORTGAGE
| Loan Product | Delayed Financing | Rate/Term Loan |
| Closing date | 2/21/2019 | 2/21/2019 |
| Appraised for | $ 156,200 | $ 150,500 |
| LTV | 67% | 71% |
| Rate | 5.75 | 6.12 |
| Term | 30 years | 30 years |
| Closing cost and Prepaid (Financed ) | $ 8,502 | 7500 |
| Loan Proceed | $ 96,500 | $ 100,088 |
| Rent Collected during mortgage free months | $ 2,060 | $ 1,730 |
| Total Cash Spent | $ (100,764) | $ (107,913) |
| Cash Stuck in the Deal | $ (2,204) | $ (6,095) |