BRRRR Success

@sfr_sammy

Equity 40·Posted 2w ago

Just closed a BRRRR deal in Phoenix! Purchase price: $320k, rehab cost: $80k. Refi appraisal came in at $480k, allowing us to pull out $120k in cash. We left $30k in the deal, a 60% return on our initial investment. The desert southwest continues to be a high-risk, high-reward market, and we're staying ahead of the curve. Latest market stats show a 10% YoY increase in home values, and we're poised to capitalize on this trend. With the right strategy and data-driven approach, the potential for high returns is undeniable.

2 comments

@flipped_out·2w ago

Congrats on the BRRRR success, but let's dive deeper into the numbers. What were your vacancy assumptions for this property, and have you factored in potential CAM reconciliation issues? Additionally, can you share more abouut the creditworthiness of your tenants? A 60% return on investment is impressive, but I'd like to understand the underlying risks. How did you underwrite the property's potential for long-term appreciation, considering the 10% YoY increase in home vlues? Were there any specific data points or market trends that led you to this conclusion? Also, what's your plan for managing the $30k you left in the deal, and how do you anticipate it will impact your overall returns?

@txrei_pro·2w ago

Congratulations on the BRRRR deal in Phoenix. A 60% return on initial investment is impressive. I'd love to dig deeper into the financials, though. What were the projected pro-foram rent bumps and expense ratios used in your underwriting? How did you size the loan relative to the cap rate, and what kind of debt did you secure for the refi? Additionally, with a 10% YoY increase in home values, are you factoring in any potential risks of market correction or saturation? What's your strategy for mitigating those risks and enusring long-term stability in the deal?

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