If you're a real estate investor and are interested in the BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat) than I would recommend checking out my latest article at BiggerPockets.com titled "Case Study: My BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Success—All In Under 75% ARV."
In it, I describe the process from beginning to end of buying, fixing, renting and refinancing a single family property. In the end, we were able to refinance out (or will be able to, more accurately) all of our investment, have a sizeable equity cushion and get some cash flow. Although, I should note, I'm getting hammered in the comments for settling for too little cash flow ($800/year), despite that being an 8% upfront loan with conservative expenses.
Anyways, here are our critiera, which this particular property fit in very well,
"1. Our total cost into the property will be less than 75 percent of the ARV, allowing us to refinance out our entire investment.
2. The property must cash flow with a fully financed 8 percent interest only loan on it (this is what we usually get from our private lenders).
- Note: If a property doesn’t meet this qualification, we would likely flip the property.
3. The property must be in at least an OK neighborhood. Blue collar and lower end properties are fine, but we are not looking to buy D properties as rentals. There are just too many headaches and problems.
- Note: If a property doesn’t meet this qualification, we would consider wholesaling the property to an investor who specializes in such areas."
The rest of the story is all there. Go check it out.
"Every day is a new life to the wise man."
The Righteous Mind
Star Slate Codex
Consulting by RPM