My first ever out of state investment was a single family rental property in Indianapolis purchased during the COVID pandemic. This property was acquired via a wholesaler for $50,000. The rehab which was budgeted for $30k turned out to be closer to $40k so I was all-in to this deal for $90k planning to use the BRRRR strategy. Since I used all of my own cash I didn't have any financing costs and delayed the refi process until about 9 months after purchase. This helped with the appraisal as the overall growth in the market helped push the appraised value of the home to $160,000. I could have cashed-out more than I put in but decided to only pull out my initial capital to give me some extra monthly cash flow. I was pleasantly surprised that my first out of state investment was a home run BRRRR. While the timing of the market helped, the single most important thing that I did was take ACTION rather than mull over what could go wrong.

What made you interested in investing in this type of deal?

Long term cash flow

How did you find this deal and how did you negotiate it?

After getting out-bid on numerous mls deals this one came through via a wholesaler. No negotiation on price and was a little risky buying as-is without any contingencies but I knew the area and market well enough to feel comfortable in the deal.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete cosmetic upgrade.

What was the outcome?

Home run BRRRR with infinite returns that cash flows $200 per month

Lessons learned? Challenges?

Was very hesitant during the middle of the pandemic as the future was so unpredictable but had analyzed enough properties to know what a good deal looked like and this was one! Investing remotely is always a challenge but having a good boots on the ground team is key!!

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First out of state rental property

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