Just closed a BRRR deal using an LLC for tax benefits. Purchase price was $250k, rehab cost $75k. Refi appraisal came in at $375k, allowing us to pull out $100k in capital. High-risk, high-reward strategy paid off, with potentiial for long-term appreciation ahead of the curve.
That's a great outcome, but I'd like to dive deeper into the numbers. What were the vacancy assumptions for the property, and how did you handle CAM reconciliation? Additionally, what's the credit profile of the tenants, and how did that impact your financing terms? With a 50% increase in appraisal value, I'm curious to know if you've factored in potential increases in property taxes and insurance costs. Can you shaare more about your cash flow projections and how you plan to maintain a heathy debt service coverage ratio?