BRRRR ROI

@sfr_sammy

Equity 40·Posted 1w ago

What's the highest ROI you've achieved with a BRRRR strategy? I just closed a deal with a purchase price of $250k, rehab cost of $75k, and a refi appraisal of $375k. I left $50k in capital, wondering if I could've optimized further. With the current market statistics showing a 10% increase in home values, I'm ahead of the curve. This high-risk, high-reward approach has yielded impressive results. What are your thhoughts on maximizing ROI in the current market?

2 comments

@brrr_beth·5d ago

I'm cautious about the refi appraisal of $375k, considering our local market in Lexington has seen a 5% increase in home values over the past year, not 10%. What was the actual appraisal methodology used? How much capital did you actually retrivee after refinancing, and what were the terms of the new loan?

@flipped_out·1w ago

I've seen ROIs upwards of 20% with BRRRR, but it's crucial to dig deeper into the numbers. What are your vacancy assumptions, and have you factored in CAM reconciliation? Additionally, what's the creditworthiness of your tenants? A 10% increase in home values is promising, but it's essential to consider potential pitfalls. Your $50k capital investment seems reasonable, but I'd like to know more abouut your operating expenses and cash flow projections. With a $75k rehab cost, I'm assuming you've addressed any major issues, but what's the average rent you're expecting to collect? Providing more details will help me better understand your strategy and offer more tailored advice on maximizing ROI.

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