Case Study Breakdown: Does This BRRRR Deal Work?

[Seph Hancock]

Let’s look at a sample BRRRR deal and break down the numbers: Purchase Price: $95,000 Rehab Budget: $30,000 Total Project Cost: $125,000 After Repair Value (ARV): $190,000 Refinance (75% LTV): $142,500 Estimated Monthly Rent: $1,700 The Result: * Total Cash Invested: $125,000 * Refinance Proceeds: $142,500 * Potential to recover all invested capital and pull out additional funds * Long-term cash-flowing rental added to the portfolio Deals like this are what many investors look for because they can create equity through renovation while maintaining cash flow after stabilization. The key is making sure the numbers are realistic: * Conservative ARV estimates * Accurate rehab budgets * Strong rental demand * Reliable financing terms * Adequate cash flow after debt service For those actively investing, what are you seeing in your market today? * Average purchase prices? * Rehab costs? * Rent-to-price ratios? * Refinance terms? I enjoy connecting with investors, lenders, wholesalers, and operators who are actively analyzing and closing deals. #BRRRR #RealEstateInvesting #RentalProperties #CashFlow #BuyAndHold #RealEstateInvestor #InvestmentProperty #BiggerPockets #RealEstateNetworking #PassiveIncome