This property was purchased using the BRRRR (Buy, Renovate, Rent, Refinance, Repeat) method if you’re not familiar.
Renovations included new flooring and windows throughout, a new bathroom, a new heater, full repaint (interior & exterior), and new light fixtures.
This property was purchased using the BRRRR (Buy, Renovate, Rent, Refinance, Repeat) method. If you’re not familiar, take a look at the following article by clicking here. Using this property as an example, the all-in cost of this project was $190k (purchase and rehab cost). The home is currently rented at $1,600/month. The appraised value after renovation is 250k, and with a mortgage of 187.5k (75% of the appraised value), the mortgage payment is about $1000/month. This means that Gordon 1) Got most of the money back after refinancing, 2) Has little equity in the property, 3) Has cash flow every month.
Lesson learned: Instead of hiring a GC, hire subcontractors for small projects.