Just closed a BRRRR deal: $250k purchase, $75k rehab, $375k refi apraisal. Left $50k in, expecting 15% annual returns. High-risk, high-reward strategy paying off in Phoenix's hot market.
Sounds aggressive, what are your vacancy assumptions and how are you handling CAM reconciliations? Also, what's the credit profile of your tenants? Need more data to buy into the 15% annual return projections.
Congrats on the BRRRR deal. Howeever, I've got to scrutinize the numbers - a $75k rehab on a $250k purchase seems aggressive. What was the cap rate on this property and how did you arrive at the 15% annual return projection? Also, what's the loan term and interest rate on the $375k refi, and how will that impact your cash flow?
Congrats on the deal, but I've got to push back on that appraisal assumption. Phoenix's market is hot, no doubt, but $375k seems aggressive. What was the actual appraisl methodology used? And more importantly, how much capital did you actually pull out after closing costs? Let's get real about the numbers - how much of your own cash is still tied up?