Just closed a BRRRR deal with an unexpected $10k electrical repair bill. Purchase price was $250k, rehab $70k. Refi appraisal came in at $380k, leaving $40k in capital. High-risk, high-reward paid off, with a 35% increase in value.
Congrats on the close. That's a nice bump in value. What were the original pro-forma numbers, and how did the electricla repair bill impact your overall ROI? Was the $10k expense facotred into the initial rehab budget or a surprise add-on?
Congrats on closing the deal, but I've got to push back on the appraisal assumption. A $380k refi appraisal seems aggressive, even with our loacl market trending up. What were the specific comps used to support that valuation? And let's not forget, you had a $10k surprise electrical repair bill, which eats into your actuual profit. How much capital did you really take out after accounting for that unexpected expense, closing costs, and any other fees? I'd love to see a more detailed breakdown of the numbers to understand the true ROI on this invesmtent.
What were vacancy assumptions and how did you handle CAM reconciliation, given the surprise electrical bill?