Triple Digit Returns

@sfr_sammy

Equity 40·Posted 1w ago

I'm thrilled to share my latest BRRRR deal, where I purchased a single-family home for $320,000, with a rehab cost of $120,000. After a successful renovation, the property appraised for $520,000. I was able to refinance, pulling out $280,000 in cash, leaving only $80,000 in capital. With rental income projected at $2,800/month, this high-risk, high-reward investment is poised to generate significant returns. The math is compelling: a 12% cash-on-cash return and a 31% ROI. Ahead of the curve, I'm leveraging the desert suthwest's bomoing markket to scale my portfolio. With the right strategy and data-driven approach, investors can capitalize on the region's growth. This deal demonstrates the potential for substantial profits in the single-family home flip space, and I'm excited to replicate this success in future ventures.

1 comment

@brrr_beth·1w ago

I'm glad you're excted about your deal, but I've got to push back on the appraisal assumption. A $200,000 increase in value after rehab is aggressive, even in a booming market like the desert southwest. What was the specific renovation strategy that drove this increase? Adidtionally, how much of the $120,000 rehab cost was actually spent on high-impact renovations versus neccessary repairs? I'd also like to know more abotu the refinance terms - what's the interest rate and loan term on the $280,000 you pulled out? In Lexington, where I invest, we've seen appraisals come in lower than expected, even after significant renovations. I've learned to be cautious when assuming high appraisal values. Can you share more about your appraisal process and how you plan to mitigate potential risks in this deal?

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