BRRRRed to perfection

[Jake Moran]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Lodi.

Purchase price: $360,000
Cash invested: $30,000

Duplex BRRRR that went exactly to plan. 20% down + closing costs + $13k rehab (done mostly by ourselves) = $105k total invested. The two units are bringing in $3,050 monthly rent (and could still be higher - the Central Valley in northern California has extreme rental demand right now). Original mortgage was $1,650, other costs include lawn, water, and maintenance reserves. Total monthly cashflow of $1,200/month, or 13.7% cash-on-cash returns.

But the best part is that we are now in the process of refinancing. Based on current comps, we are expecting it to appraise for at least $480k. We can only get a 70% LTV. When all is said and done, we should cash out $70-80k, so our total cash invested will be about $30k. And our mortgage will be $200 higher, so our monthly cashflow will be about $1,000.

Which puts our cash-on-cash returns at a whopping 40%.