Just Closing on my first BRRRR. (Report)

[Jake Thornton]

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Hi BPers, 

Here are the numbers on my first BRRRR deal that I close tomorrow. The rehab cost is the estimate from my contractor (so may go up). Would love some feedback on what I've done right, what could be improved, and what to look out for in the next stages of this. Thanks in advance.

Jake

[Jaysen Medhurst]

Numbers look good for the most part, @Jake Thornton. I'm a little skeptical that you can add $30k+ of value with only $6k of work, though. How confident are you in your reno budget and ARV?

As far as the rental analysis:

• 10% Vacancy is pretty high for a SFR. I usually use 5%, but this is pretty localized.
• 20% combined for repairs and CapEx is conservative. Nothing wrong with that, especially since this is such an inexpensive property.
• If you're doubling the value of this property, you should expect the taxes (and maybe insurance) to go up in the future as well.

Good luck! Let us know how it goes.