First BRRRR Property

[Felicia Mares]

Investment Info:

Single-family residence other investment.

Purchase price: $25,000
Cash invested: $15,000

This was a fixer upper bought under land contract.

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

After purchasing my first two properties conventional, I was too close on my DTI to get another loan. I found a land contract deal that needed a lot of work.

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

I found it through my realtor. I originally offered $20k and I was outbid. My realtor reached out to me when the deal fell through and I was able to secure the property.

How did you finance this deal?

I took out a HELOC on my primary residence to fund the deal. I put down $5k and the remainder of the HELOC is being used for rehab.

How did you add value to the deal?

I am still working on the rehab. It has been a learning process and I came across a few bumps in the road.

What was the outcome?

The project is on track to be completed by the end of June.

Lessons learned? Challenges?

I learned that there has to be order and process. We had a stop work order because my partner and I relied solely on the guidance of our newbie contractor. Permits were not pulled up front and the township got cranky. I realize that order of operations is important in staying on track and staying out of the dog house.

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

I worked with Susan Hernandez from Berkshire Hathaway. She is amazing and knowledgeable. She kept me in mind when the original deal fell through with another buying which allowed me to secure the property.