Rental Property Investor · Oceanside, CA · Member since 2019 · 121 posts · 58 votes
Under contract on my first deal now what? BRRRR or Flip?
Here are the details; My intention was to BRRRR however I ended up with conventional financing and just wondering if it will still make sense due to closing costs?
Purchase Price: $45K SFR
Estimated Rehab: $30K
ARV: $120K
Cashflow after all expenses as well as setting funds aside for repairs, vacancy and cap-ex:
$275 per month
Given these numbers would I be better off Flipping? Or should I BRRRR possibly with a HELOC or a cash-out refi and just eat more closing costs?
Either way I’m excited to be under contract on my first investment and looking forward to learning the next few pieces!
Under contract on my first deal now what? BRRRR or Flip?
Here are the details; My intention was to BRRRR however I ended up with conventional financing and just wondering if it will still make sense due to closing costs?
Purchase Price: $45K SFR
Estimated Rehab: $30K
ARV: $120K
Cashflow after all expenses as well as setting funds aside for repairs, vacancy and cap-ex:
$275 per month
Given these numbers would I be better off Flipping? Or should I BRRRR possibly with a HELOC or a cash-out refi and just eat more closing costs?
Either way I’m excited to be under contract on my first investment and looking forward to learning the next few p
BRRRR. Oh, definitely! Congratulations on your success!
Under contract on my first deal now what? BRRRR or Flip?
Here are the details; My intention was to BRRRR however I ended up with conventional financing and just wondering if it will still make sense due to closing costs?
Purchase Price: $45K SFR
Estimated Rehab: $30K
ARV: $120K
Cashflow after all expenses as well as setting funds aside for repairs, vacancy and cap-ex:
$275 per month
Given these numbers would I be better off Flipping? Or should I BRRRR possibly with a HELOC or a cash-out refi and just eat more closing costs?
Either way I’m excited to be under contract on my first investment and looking forward to learning the next few p
BRRRR. Oh, definitely! Congratulations on your success!
What impact would the Refinance have in relation to the current financing you have on the property (i.e. increase, decrease, or neutral effect on cashflow)? That is pretty solid cashflow for it already being financed.
I as well wouldn't mind knowing the general location and what kind of rent you are pulling in if you don't mind exposing such information?
So to clarify it’s not rented yet so of course the cashflow is estimated. PM said after rehab it should rent for $1200-$1500 as did my realtor and Rentometer. Property is in Lincoln Place.
Congrats! I’m from NY and just did a flip in Pittsburgh. It’s a great town, I would caution I think the rental estimates you mentioned below might be hard to achieve. So proceed cautiously and be conservative when thinking about that.
Also, finding good/reliable contractors in PGH is very, very, very tough. After firing a number of people I did find a great electrician, plumber, HVAC and drywall guy/s. If you need their info PM me, I’d hire them again in a heartbeat.
@Philip Coiro Thanks for the info and I’ll keep you posted on the contractors, have several my realtor has set me up with for now. As for rents, I have received the same estimates from 4 sources so hopefully it’s accurate but I guess we will see.
I don’t want to be a Debby downer but I’d bet your arv and rental rates are wishful thinking but you might get lucky . Estimates aren’t reality .Best of luck
@Dennis M. I guess anything is possible but all you can do is go off datasets and I suppose you can talk yourself out of any deal. The rents I received from 4 different sources. The ARV from about the same. Then as has been discussed on the Podcast realizing that at some point you see the success of the other professionals who are working for you and you have to trust that there is not some big Collusion game going on just to sell you on something that will only cause you to trash their rep and not return for more business. There is always that chance that things are not what they seem, hope that's not the case.
@Dennis M. I guess anything is possible but all you can do is go off datasets and I suppose you can talk yourself out of any deal. The rents I received from 4 different sources. The ARV from about the same. Then as has been discussed on the Podcast realizing that at some point you see the success of the other professionals who are working for you and you have to trust that there is not some big Collusion game going on just to sell you on something that will only cause you to trash their rep and not return for more business. There is always that chance that things are not what they seem, hope that's not the case.
Well Your going off a calculation . I live about an hour north of this area .I hope your right but I’m saying don’t expect those numbers
The ARV is not out of the question but rents are very localized in Pittsburgh. There are a few areas where over $1000 is more achievable but still many areas where it is not with out being in an "A" neighborhood with an expensive unit. Pretty sure Jim K. has some houses in Munhall and Whitaker area so he might be able to tell you if your thoughts are realistic. Me personally I do not know enough about the immediate area that when I see it is near Homestead, Munhall, and West Mifflin I get a little worried.