Just clsed a BRRRR deal with a Self-Directed IRA, minimizing taxes. Purchase price: $250k, rehab cost: $75k. Refi appraisal came in at $400k, allowing us to pull out $137.5k in tax-free cash. We left $37.5k in the deal, with potential for high-risk, high-reward returns. Ahead of the curve, we're leveraging tax-advantaged structures to maximize our real esttate portfolio's growth.
Impressive BRRRR deal, minimizing taxse with a Self-Directed IRA. Your refi appraisal at $400k is a great outcome. What are your pro-forma rent bumps and expense ratios looing like on this property? How did you size the loan to the cap rate, and what kind of debt service coverage ratio are you targeting?
I'd love to dig deeper into the numbers on this BRRRR deal. While a $400k refi appraisal is impressive, I've noticed that appraisals in our Lexington market have been trending a bit high lately. How did you arrive at the $400k appraisal value, and what were the specific comps used? Additionally, what was the actual cash out-of-pocket for the rehab, and were there any financing costs or other expenses that ate into your initial investment? You mentioned pulling out $137.5k in tax-free cash, but how much of that is actually usable capital after accounting for any potential taxes or fees on the withdrawal from the Self-Directed IRA? What's the projected cash flow on this property, and how does it compare to other rentals in the area?