First BRRRR in suburbs North of Atlanta, Ga

[Grant Waugh]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $140,000
Sale price: $400,000

My first BRRRR. Complete renovation down to studs. Now a cash flowing long term rental in an A+ Area. It was tempting to flip and take the cash but I am happy with my decision to hold this property in my portfolio!

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

I wanted to add more properties to my rental portfolio in A and B areas.

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

This was a referral. I locked it up on site with the seller the day I met with him. I knew there was a lot of competition and other interested buyers lined up behind me.

How did you finance this deal?

Hard Money

How did you add value to the deal?

I used a GC to fully renovate the property down to the studs. It has almost every problem you can think of when I first bought it. Here is a quick scope of work:
-New plumbing, electrical, roof, HVAC
-Fixed foundation issues
-Remediated termite damage
-Added a bathroom and bedroom
-Converted carport into a 2 car garage
-New LVP flooring and tile floors in bathrooms
-Full kitchen and bathroom renovation
-High end finishes throughout (to match the area)
-Converted to city water

What was the outcome?

I had an ARV appraisal done and with adding a garage was expected to appraise around 380k. It appraised for 400k and I pulled all of my money out + a little additional cash tax free with a cash out refinance.

Lessons learned? Challenges?

The lessons I have learned on this deal are too long to list, but the biggest takeaway is TAKE ACTION!
I had hoped the project was going to take half as long and that I walked away with more money after the refinance. It was also hard to walk away from the profit potential of a flip but I grew up in the area and I believe this it is going to continue to see great appreciation. I plan on holding onto this cash-flowing rental property for a long time!

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

Lendinghome was the Hard Money lender. I would work with them again. I was the agent and I would work with myself again too :)