BRRRR to AirBNB - how to creatively BRRRR in high dollar markets

[Jason Roberts]

Investment Info:

Single-family residence other investment.

Purchase price: $342,000
Cash invested: $115,000

This was a BRRRR Short term rental deal. We purchased a property that had foundation damage and needed a new septic system. We fully renovated the property and were able to prove that it did not need a septic replacement which saved us $30K on the deal. This property appraised at $580k. We were able to refinance at 90% LTV and pull all of our initial investment out of the home. The home is now an Airbnb and pulls in a net monthly cashflow of $1,900 per month on average

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

This was an on market property that needed quite a lot of work. It was not listed with foundation damage, that was discovered after full inspection. We used that and the septic tank issues to negotiate this deal down to $349K from the original $365k contract price

How did you finance this deal?

Hard money - 10% of the purchase price and renovation's for down payment,

How did you add value to the deal?

Complete remodel