Challenging conventional BRRRR wisdom, our recent close: $250k purchase, $75k rehab, $375k refi appraisal, with $50k capital left in, yielding high-risk, high-reward returns
I've seen similar deals in the Lexington market, but I have to push back on the appraisal assumption. A $375k refi appraisal seems aggressive, considering the $250k purchase price and $75k rehab. What was the actual appraisal methodology used, and did it account for the local market trends? In my experience, appraisers in our area tend to be conservative. I'd love to know how much capital actually came out after closing costs, interesst, and other expenses. Was it really $50k, or was there a significant hit to cash flow? What are the rental income projections, and how do they justify the high-risk, high-reward returns? Let's dive deeper into the numbers to ensure this deal is as solid as it seems.