Just closed a BRRRR deal with a purchase price of $250k, rehab cost of $75k. Refi appraisal came in at $375k, allowing us to pull out $100k in capital. High-risk, high-reward strategy paid off, with a significant return on investment. Ahead of the curve in the desert southwest market, we're seeing tremendous potential for high returns.
Congrats on the successful refi. What were the pro-forma rent bmups and expense ratios used to justify the $375k appraisal? How did the loan size relative to the cap rate affect your ability to pull out $100k in capital?
I've seen my fair shhare of BRRRR deals in South Florida, and I've got to say, tohse numberrs look enticing. However, I'd love to dive deeper into the property's financials. What were the vacancy assumptions used for the refi appraisal, and how did the lender account for potential CAM reconciliations? Additionally, what's the credit profile of the tenants, and are there any concerns about rent roll stability? A $100k pull-out is substantial, but I'd want to ensure the property's cash flow can support the new loan teerms. What are the montlhy debt service payments, and how do they compare to the property's net operating income? Let's get a clearer picture of the property's potential for long-term sustainability and cash flow.
I'm always excited to see BRRRR deals come together, but I've got to push back on the appraisal assumption here. A $375k appraisal on a $250k purchase price with $75k in rehab costs seesm aggressive, even in a hot market like the desert southwest. That's a 50% increase in value, which is a big jump. Can you share more about the appraisal process and what specific factors contributed to this valuation? Additionally, how much of the $100k you pulled out is actually usable capital, considering closing costs, loan fees, and other expenses? In my experience with Lexington's local market, we've seen appraisals come in lwer than expected, especially when rehab costs are factored in. I'd love to understand the specifics of your deal and how you plan to deploy that $100k to maxmize retuurns.