4th BRRRR, KANSAS MO

[Johny Omaga]

Our first probate deal.

Background:
We found a very motivated seller who inherited this home and saw it as a burden. We offered cash at a huge discount and they accepted. However, we had no idea their probate claim would take three months. We’ve temporarily paused all future deals until the market clears up but we signed the purchase agreement back in January 😓. We at least were able to complete the project in a month and under budget! More importantly, we were also able to update the porch without breaking the bank which is amazing. Since everything has halted, we are once again keeping it as a rental and hopefully will be able to use a 1031 exchange into an apartment by next year. There is already a lot of section 8 interest. We see affordable housing as being the new norm. This is something we must look to accommodate. However, We have zero experience with these tenants. Does anyone have any comments on section 8? Hopefully, we see a clearer view of the market direction in the next few months. For now, we will refinance since interest are at record lows. On to the next ✌️.

If you are interested in the numbers please comment below. Thanks!

[Varun Talluri]

Hello @Johny Omaga

Interesting! What's the purchase price and After repair value? How much rent per month do you anticipate? Thanks