Why I liked it
I’d been trying to break into this new market for several months and was holding out for a property I could BRRRR and test out the new team.
This property came to me from one of my most trusted contacts in that area and seemed to be right up my alley.
Deal structure
Hard money loan with the plan to refinance into a non-conventional long-term loan in 3-6 months.
Deal outcome
Rehab estimates came in extremely high and took way too long to reduce to an acceptable amount (although still much higher than planned).
It took over two months from closing before work even started. Despite that, the property did appraise for much higher than planned, and rent also looks like it will land higher than planned, so we can swallow the higher rehab costs a little easier.
Projected Numbers
Purchase: $111,000
Rehab: $20,000
ARV: $155,000
Rent: $1,200
Actual numbers
Purchase: $110,000
Rehab: $34,000
ARV: $171,000
Rent: $1,350