Financial Highlights
Initial Offer Date:
Initial Offer amount:
Purchase Close Date: May 30, 2019
Purchase Price: $61,000
Purchase Source: MLS
Rehab Start Date: N/A
Rehab Completion Date: N/A
Rehab Amount: N/A
Appraisal Date: May 14, 2019
Appraised Value: $71,000
Refinance Date: N/A
Rent: $1,000
Financial Summary
Next block down from the first BRRRR Rental. The amount of time we have spent in that neighborhood has provided a “boots on the ground” mentality. I feel confident in saying, we have market knowledge for this block. Or at least confident enough to make this purchase!
We had slight push back from family friends that attended the home inspection with us. Enough for us to question, but we still decided to go through with the purchase.
I knew there was equity in the deal. The list price was $64,000 and I knew we had run the comps for BRRRR Rental #1. Those comps showed at least an ARV of $70,000.
Our agent negotiated the deal down to the purchase price of $61,000.
Once the appraisal came back with $71,000, we leaped into the air with joy and excitement. Honestly, immediate thought was confusion. “What exactly does this mean?”
We purchased a property for $10,000 under the value of the property.
Market rents in the neighborhood should be at $1,200. Currently, the tenant living in the property had a rental agreement in place for $1,000. The lease ends in December 2019. The numbers meet our criteria with a $200 shortage in monthly rents. By the end of the year, we’ll know if the tenant is solid or not. Then we can make the determination: If the tenant is a good one, we’ll release, or if not, then we can search for a new tenant utilizing the market rents!
We had slight push back from family friends that attended the home inspection with us. Enough for us to question, but we still decided to go through with the purchase.
I knew there was equity in the deal. The list price was $64,000 and I knew we had run the comps for BRRRR Rental #1. Those comps showed at least an ARV of $70,000.
Our agent negotiated the deal down to the purchase price of $61,000.
Once the appraisal came back with $71,000, we leaped into the air with joy and excitement. Honestly, immediate thought was confusion. “What exactly does this mean?”
We purchased a property for $10,000 under the value of the property.
Market rents in the neighborhood should be at $1,200. Currently, the tenant living in the property had a rental agreement in place for $1,000. The lease ends in December 2019. The numbers meet our criteria with a $200 shortage in monthly rents. By the end of the year, we’ll know if the tenant is solid or not. Then we can make the determination: If the tenant is a good one, we’ll release, or if not, then we can search for a new tenant utilizing the market rents!
