Gainesville, Florida - BRRRR Loan
Florida Private Lender Terms
Location: Gainesville, FL
Purchase Price: $41,000
Reno Amt: $25,000
Loan Amt: $36,900
Actual Term: 5 mo.
Net Profit: $27,750 with 30yr Refi
Rental: $950 = Net Cash-Flow: $265.00
This project was a clean easy purchase and renovation. The investor purchased the property with 15% down as well they were given a loan for 100% of the renovation. Their exit plan was to refinance so we made sure that they would qualify for a fixed rate, 30yr loan from our institutional investor and we closed as quickly as possible. The investor also already had their property manager identified and the manager knew where the project was in the timeline to completion. By the time the investors’ GC had completed the work the PM already had a tenant with a signed lease and 2 months security deposit ready to go.
While the kitchen was in decent shape it did not go with the “tenant” focus our investor approached this project with. This is critical. knowing your exit strategy plays just as important a role as your renovation plans. Knowing who your end client will be (renter vs homeowner) will determine your renovation budget!
Sometimes bathrooms can be tough to work around, especially those old bathrooms from the 70s and 80s. Tight and crammed it can be a challenge to make them seem open and spacious. I think our investor did a good job, look below!
While some projects have a dramatically different outside, some do not. And that’s OK. Again it all depends on who your target audience is for your exit. If the investor had decided to sell this property on the open market, they would have repainted the outside in black and changed the shutters for a naturally worn wood look. It would have been able to easily fetch $135K plus!
Renovation of a kitchen for tenants needs to be simplistic and easy to maintain. Dark cabinets help cover the wear and tear of tenants in a property and can add longevity to regularly used spaces.
What a difference right? There’s not much that changed in the aesthetic except the removal of the shelving over the toilet and changing out the shower wall with a ceramic tile inset. These little changes can add great value for those cramped and un-alterable places such as small bathrooms. Having creativity is a must when handling your own projects!
Are you looking for funding on your next Florida real estate deal? Why not work with a Florida Private Lender!
Are you interested to see what loan programs Blue Bay Capital has to offer? We fund Fix and Flippers, Builders, and Wholesalers!
