Lemon Grove, CA · 4 Units · 8 BR · 4 BA
This example demonstrates a BRRRR investment (Buy, Rehab, Rent, Refinance, Repeat). The table below summarizes key purchase and operating assumptions prior to the refinance.
| Purchase Price | $450,000 | After Repair Value (ARV) | $600,000 |
|---|---|---|---|
| Rehab Costs | $32,725 | Purchase Costs | $7,500 |
| Amount Financed | $392,725 | Down Payment | $90,000 |
| Financing Rate | 8.5% interest‑only | Holding Period | 4 months |
| Total Units | 4 | Gross Rent (after rehab) | $4,200/mo |
| Operating Expenses | $1,000/mo | Net Cash Flow | $387/mo |
This fourplex is a solid income producer located in an up‑and‑coming neighborhood of Lemon Grove. Each unit features two bedrooms and one bathroom. The rehab plan includes updating kitchens, bathrooms and flooring to justify higher post‑refi rents.
Year Built: 1975
Parking: Surface lot
Lot Size: 10,000 Sq.Ft.
Tags: multi‑family, value‑add, BRRRR
The BRRRR worksheet includes both the acquisition and the refinance phases. These numbers are representative only.
| Purchase & Rehab | |
|---|---|
| Purchase Price | $450,000 |
| Closing Costs | $7,500 |
| Rehab Budget | $32,725 |
| Financing (Acquisition) | |
| Amount Financed | $392,725 |
| Down Payment | $90,000 |
| Interest Rate | 8.5% (interest‑only) |
| Term | 12 months |
| Financing (Refinance) | |
| Refinance LTV | 75% |
| Refinance Costs | $6,000 |
| Operating Income & Expenses | |
| Monthly Rent (per unit) | $1,050 |
| Vacancy Rate | 5% |
| Insurance | $150/mo |
| Property Taxes | $350/mo |
| Maintenance & Repairs | $250/mo |
The table below illustrates long‑term performance after the rehab and refinance. It assumes 3% annual appreciation and 2% rent and expense growth.
| Year | Rental Income | Operating Expenses | Net Cash Flow | Property Value | Total Equity |
|---|---|---|---|---|---|
| 1 | $50,400 | $12,000 | $4,644 | $618,000 | $148,000 |
| 5 | $54,620 | $13,100 | $6,120 | $698,200 | $184,500 |
| 10 | $60,200 | $14,450 | $7,680 | $808,000 | $240,000 |
| 20 | $72,400 | $17,500 | $10,920 | $1,078,000 | $377,000 |
Based on comparable multi‑family sales, the after‑repair value is estimated at $600,000 with comps trading between $580,000 and $620,000. Average sale price per unit is $150,000.
| Address | Units | Year Built | Sale Price | $/Unit | Distance |
|---|---|---|---|---|---|
| 1234 Main St | 4 | 1972 | $590,000 | $147,500 | 0.6 mi |
| 5678 Elm Ave | 4 | 1970 | $615,000 | $153,750 | 0.8 mi |
| 4321 Maple Dr | 4 | 1974 | $585,000 | $146,250 | 0.5 mi |
Comparable rental listings indicate market rent per unit between $1,000 and $1,100.
| Address | Units | Beds/Baths | Rent per Unit | $ / Unit | Distance |
|---|---|---|---|---|---|
| 1010 Oak St | 4 | 2/1 | $1,025 | $1,025 | 0.5 mi |
| 2020 Cedar Ln | 4 | 2/1 | $1,075 | $1,075 | 0.7 mi |
| 3030 Pine Ct | 4 | 2/1 | $1,050 | $1,050 | 0.6 mi |
Public records show this property was built in 1975 and sits on a 10,000 sq.ft. lot. It is legally classified as a multi‑family dwelling with four units.
Tax Assessment (2025): $500,000
Estimated Property Value: $580,000
Previous Sale: 2010 for $350,000