Successful completed BRRRR in MAINE

[Amanda Salovitch]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $159,000

Purchase price: $159,000
Renovation: $15,000
ARV: $265,000
Rent: $2,000/month
Cashflow: $800/month

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

I read the BRRRR book by David Greene

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

This was a rare short sale on the market. I offered cash, asking price and no contingencies. Because it was a short sale it took three months to close, but it was worth the wait.

How did you finance this deal?

We used hard money from a man that my husband works with. He gave us the $159k for the deal at 10% interest for 6 months and no fees. We used our own money to finance the rehab then we refinanced after three months and took out 70% to pay back our lender and ourselves.

How did you add value to the deal?

Trash removal, new flooring, new toilet, painted interior and exterior, new appliances, new fixtures, fixed plumbing and electrical issues.

What was the outcome?

This was my first text book BRRRR. On the other deals I have done I have ended up leaving some money in the deal which is fine, but it was so nice to get all of our capital back on this one.

Lessons learned? Challenges?

We did the rehab ourselves and I was 9 months pregnant and ended up having the baby in the middle of the project so it took a little longer than we wanted, but in the end it all worked out and we even paid our private lender back a few weeks early! In the future I will probably sub out more of the work, but it is really hard to find contractors in this area.

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

I represented myself as an agent and I used Bangor Savings Bank for the refinance.