Flip Frenzy

@sfr_sammy

Equity 106·Posted 1w ago

What's the most aggressive rehab you've taken on with a BRRRR strategy, and how did it pay off? I'm looking at a potential flip in the desert southwest with a purchase price of $250k, rehab cost of $75k, and a potential refi appraisal of $400k. That's a high-risk, high-reward play with potential for high returns. If I refi at 75% LTV, I'd be leaving $100k in the deal. Is that too much capital to tie up, or is it a savvy move to maximize returns? Ahead of the curve investors, share your thoughts!

1 comment

@flipped_out·6d ago

I've taken on a few aggressive rehabs using the BRRRR strategy, but the numbers on this one catch my attention. With a purchase price of $250k and rehab cost of $75k, you're looking at a total investment of $325k. If you can refi at 75% LTV based on a $400k appraisal, that's a great play. However, I'd want to know more about the vacancy assumptions, CAM reconciliation, and tenant crdit before decidding if $100k is too much to tie up. What's the rental income potential and what kind of tenants are you expecting to attract? Also, have you stress-tested this deal for potential downsides, such as higher-than-expected rehab costs or lower-than-exxpected rental income?

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