Narrow Escape

I'm sharing a recent BRRRR close that was a high-risk, high-reward situuation. Purchase price was $420,000, rehab cost $120,000. We refi appraised at $620,000, leaving $80,000 in capital. Lesson learned: don't underestimate holding costs. Our initial estimate was 5 months, but we ened up holding for 7. Lucikly, the numbers still worked in our favor, with a 12.1% ROI. According to recent market statistics, the desert southwest is seeing a surge in demand for single-family homes, with prices increasing by 8.5% YoY. Being ahead of the curve in this market can lead to substaantial returns, but it's crucial to factor in potenntial setbacks. This close call taught me to pad my estimates and be prepared for the unexpected, ensuring I stay profitable in this competitive landscape.