Word on the street is that there is no BRRR deal right now…
But that’s not what I’m seeing when deals come rolling in hot.
We’ve had quite a few deals come through our Inner Circle community.
One of my most recent BRRRs required a TON of work in order to bring value to the property. It was a no-looker when I first bought it, but it wasn’t an opportunity I was going to pass on.
Chattanooga, TN duplex closed 12/15
- Purchase price: $118,000
- Renovation budget: $30,000
- Market Rents $1450
Estimated ARV $180,000
I’ll end up leaving $17k in the deal, and the COC is 16%.
The actual cash flow is not great, the interest rate hike cost me $100/mo. But the neighborhood is improving so I’ll hold long-term and make it back in rent increases.
Here’s another deal I closed on 12/20.
Holland, MI 7-unit
- Purchase price: $775,000 with $15k cash back at close
- Renovation budget: $37,500 ($7500/unit with seller credit)
- Market rents: $8575
- 6.25% cap based on new NOI $1,085,776
This could have been an 8-12 month BRRR had I used a bridge loan.
Instead, I went for a 5/30 with a prepay at 3.85% right before the interest rates went up.
I’ll have to do the math when we achieve market rents and decide if the prepay is worth it, or if I should just wait it out and pull the equity in a few years. Either way, it’s a win.
I’ve got a few more deals scheduled to close this month.
The point is – BRRR deals are out there. Don’t let anyone tell you that there aren’t!
If you’re looking for a strategy on how to find and land these deals, then join the Inner Circle group.
I wouldn’t have access to these deals if it wasn’t for this community. I’ve been doing these deals for 15 years now, I want to help you land them too.
