All Forum Posts by: Drake Huffman

Running a BRRRR deal in Baton Rouge and would appreciate honest feedback. Numbers are close, but the refi needs to hit to make it work.

Deal Overview:

• Duplex — fully occupied
• Purchase Price: $140,000
• As-Is Appraisal: $169,000
• Rehab Budget: $5,000 (cosmetic only)
• Target ARV: $180,000
• Current Rent: $1,800/mo
• Planned Rent After Rehab: $2,000/mo

Financing:

• Kiavi Bridge Loan: $128K @ 11.99%, $1,259/mo
• Personal Loan: $15K @ 26.43%, $609/mo
• Credit Card: $3K limit, $90/mo min payment
• Total Holding Costs (Pre-Refi): ~$2,160/mo
• Cash Flow (Pre-Refi): –$360/mo

Refinance Plan (Month 4):

Target Appraisal: $180,000

• 80% LTV = $144,000 loan
• Payoffs Needed:
  
• Kiavi: $128K
• Personal Loan Balance: ~$13.2K
• Closing Costs: ~$3K
• Total Needed: ~$144K → no money left in if appraisal hits

Post-Refi Cash Flow:

• 30-year fixed @ 7.25%
• New Mortgage + Expenses: ~$1,180
• Rent: $2,000
• Monthly Cash Flow: ~$820

Looking for advice on:

• Is $180K appraisal realistic after $5K rehab + $200 rent increase?
• Would you feel confident moving forward if it hinges on hitting that ARV?
• Any red flags or things I might be missing?

Appreciate the help! Trying to make sure I'm not overreaching just to force a BRRRR.