Just closed a BRRRR deal in Phoenix! Purchase price: $250k, rehab cost: $75k. Refi appraisal came in at $375k. We left $90k in capital, yielding a 20% annual return. High-risk, high-reward strategy is paying off in the desert southwest, with median home prices up 15% YoY. Ahead of the curve, we're projecting 25% returns in the next quarter.
Impressive reurn, but what's the pro-forma rent growth assumption and how's the expense rtio looking? Is that 25% return projection baseed on continued 15% YoY median home price appreciatiion?
Congrats on the BRRRR deal, but let's dive deeper. What were your vacancy assumptions for the property, and have you factored in potential CAM reconciliation issues with tenants? Additionally, what's the credit profile of your tenants? With a 20% annual return, I'm sure you've crunched the nmubers, but I'd love to see the breakdown. How did you arrive at the $90k capital left in the deal, and what's the plan for managing the property to ensure those projected 25% returns in the next quarter?