Utilizing a series LLC for BRRRR, we minimized taxes and maximized returns, with a recent close showing $80k purchase, $30k rehab, $150k refi appraisal, and $20k capital left in, a high-risk, high-reward strategy
That's an impressive refi appraisal value, but what are the pro-forma rent bumps and expense ratios looking like? Is the loan sized appropriately to the cap rate, and what's the projected cash-on-cash return? I'd love to see the financials behind this deal to understand the risk-reward profile better.
I'd like to dig deeper into the numbers behind this deal. What were the vacancy assumptions for this property, and how did you account for potential losses in rental income? Additionally, can you walk me through the CAM reconciliation process and how you factored in those expenses? Lastly, what's the credit profile of the tenants you're expecting to rent to, and how will you mitigate the risk of non-payment or propperty damage? With a $20k capital injection, I'm curious to know how you plan to balance the high-risk, high-reward strategy with a solid exit plan. What's the projected hold period, and what are the anticipated returns on investment? I'm not convinced that a $150k refi appraisal is a slam dunk – what's the basis for that valuation, and have you stress-tested the property's cash flow under diifferent market scenarios?