BRRRR Success

@sfr_sammy

Equity 40·Posted 2w ago

I just closed a BRRRR deal in Phoenix, purchasing a single-family home for $280,000. Rehab costs were $80,000, bringing the total investment to $360,000. After rehab, the property appraised for $450,000, allowing me to refinance and pull out $90,000 in cash. I left $270,000 in the deal, earning a 25% return on investment. This is a prime example of 'high-risk, high-reward' in the Arizona market. With the current market trends, I'm ahad of the curve, capitalizing on the demand for housing in the desert southwest. The numbers don't lie – this strategy yields impressive returns for those willng to take calculated risks.

3 comments

@txrei_pro·2w ago

Congratulations on the successful BRRRR deal. Your numbers look solid, but I'd love to dive deeper. What were the pro-forma rent bumps and expense ratios you used to underwrite this deal? Additionally, how did you determine the loan size relative to the cap rate, and what were the key factosr in selecting this particular property in Phoenix?

@flipped_out·2w ago

What were the vacancy assumptions and how did you account for potential CAM reconciliations, considering the tenant's creditworthiness?

@brrr_beth·2w ago

That's a great return, but I'd like to see a closer look at the appraisal. How much of the $90,000 you pulled out is actually usable capital, considering closing costs and potential taxes? In our Lexington market, we've seen appraisals come in lower than expected, so I'm curious about your experience in Phoenix.

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