1st Investment Property | Deal or No Deal?? | BRRRR

3 Replies

Hello BP Community,

I've found an off-market deal for my 1st investment property. I need your help analyzing this deal. I will be looking to BRRRR. (SFH, 3BR, 2BA, 1541 sq ft)

I've done a walkthrough of the property and it needs a full rehab. That includes: bathrooms, kitchen, flooring, paint, misc. The roof is new, hot water heater looks okay, AC unit seems to have some age, the electrical panel is labeled (so I think that's good). Home was built in 1988 and hasn't been updated. The owner says he owes 82k and would just need to be able to walk away from it. Below are some numbers.

  • 82k = purchase price
  • 30k = rehab
  • 04k = closing costs
  • 116k = total project cost
  • 130k = ARV
  • 52k = total cash needed at closing

Please see the link to the deal analysis for full details. I'm looking to see if I should pull the trigger on this one. It's close to a really good school zone and like 1 street away from shopping, groceries, fast food, etc.


View report

*This link comes directly from our calculators, based on information input by the member who posted.

5@Ryan Copeland won't be able to finance a property without insurance $50-70 per month. No PM. No soft costs, Vacancy 8%, repairs 5% and capex 10%. Cash out refi limited to 75% LTV so $97500. That's almost $300 per month in expenses out of your $320.

@Tim Herman thanks for the feedback. Let me go rework these numbers so I can get a clearer picture.  It's not looking really promising though.

Originally posted by @Tim Herman :

[email protected] Copeland won't be able to finance a property without insurance $50-70 per month. No PM. No soft costs, Vacancy 8%, repairs 5% and capex 10%. Cash out refi limited to 75% LTV so $97500. That's almost $300 per month in expenses out of your $320.

I went back in and changed the purchase price to 65k, added in all of the soft costs and did a cash out refi at $97,500.  For the deal to work, I would have to get the property at 65k.