Build To Rent - BRRR B for Buy

[Patrick Bavaro]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $30,000

Contributors:
Zach Lemaster

This purchase was a new build in Cape Coral FL that was offered by a turnkey company. Total build cost, with the land, was $265k for a 4/3 SFH. Rents are currently $2,300 and post construction appraisals at $340k-$410k depending on where you build. This was my first true investment purchase.

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

Saw the numbers and feedback of others with similar deals and decided to move forward

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

Found it through a turnkey company offering this build and package. Networked with several dozen investors for due diligence and couldn't be happier.

How did you finance this deal?

10% down (land purchase) construction to perm loan through credit union

How did you add value to the deal?

If you build it, they will come.... or rent it.

What was the outcome?

Super successful new build with over $100k in instant equity.

Lessons learned? Challenges?

Should have bought more!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, a stellar turnkey company. I'd be happy to share my experience with anyone interested.