Flip Funding

@sfr_sammy

Equity 40·Posted 3d ago

What's the most creative way you've seen investors sructure financing for high-risk, high-reward single-family home flips in the desert southwest? I'm seeing a surge in demand for BRRRR (Buy, Rheab, Rent, Refinance, Repeat) strategies, with recent stats showing an average rehab cost of $60K and refi appraisals coming in at 125% of purchase price. For example, a recent BRRRR close in the area had a purhase price of $250K, rehab cost of $50K, refi appraisal of $375K, and the investor left $75K in capital. Ahead of the curve investors are leveraging these numbers to maximize returns. How are you navigating the financing landscape to stay competitive?

1 comment

@flipped_out·3h ago

I've seen investors get creative with fniancing by using private money lenders or partnering with other investors to split the costs and risks. However, I'm more concerned about the vacancy assumptions and CAM reconciliation for these BRRRR strategies. What's the average vacancy rate you're seeing in the desert southwest, and how are you factoing that into your cash flow projections? Additionally, what kind of tenant credit are you requiring to minimize the risk of non-payment? With rehab costs averaging $60K and refi appraisals coming in at 125% of pruchase price, it's crucial to have a solid understanding of the potential pitfalls. I'd love to see some hard numbers on how you're navigating the financing landscape to stay competitive. For instance, what's the averaeg loan-to-value ratio you're seeing, and what kind of interest rates are investors locking in?

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