BRRRR deal...Section 8, We Didn't Know, But it Worked Out

[Jay Tetreault]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $20,000

This is one of the houses we bought in a two house package deal right before Covid. We found out we bought a section 8 house. We worked with the tenant and put her into a hotel for a month while we rehabbed it. We made it from a 2 bedroom to a 3 bedroom because of the difference in money form the local PHA. The rent went from $700 to $1200. We cash flow $400/mo. and refinanced the property with 30 year fixed debt.

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

Wholesale deal that matched our buying criteria.

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

Wholesaler

How did you finance this deal?

hard money and refinanced with 30yr fixed debt

How did you add value to the deal?

added a 3rd bedroom

What was the outcome?

We were able to raise the rent $1,200 approved by the PHA and now cash flows $400/mo.

Lessons learned? Challenges?

A few