Update on our first buy & hold

[Joshua Schmidt]

Investment Info:

Single-family residence buy & hold investment in Sherwood.

Purchase price: $150,000
Cash invested: $55,000

Bought this house at an auction with traditional financing. We (my partners and I) put 20% down, which means we financed $120,000.00. We put 30k down and rehab was 25k. We will be all in for about 180k. Our plan is to rent it (contract already signed) for $1600 a month and refinance to pull our cash out. A little about the house, it is a 4 bd, 3 bath, 3000 sq ft, built in early 70s and is built in traditional style. We replaced roof, improved master suite with walk in closets, ripped all the paneling down, replaced with drywall, painted the whole inside of the house, white washed the brick fireplace, placed LVP flooring throughout the house, replaced counter-tops in kitchen and replaced vanities in bathrooms. Along with a lot more little details, this was a great first BRRRR and I think we will do many more! ARV came out to be 250K! Like stated earlier we were all in for 180K. Thats 70K in equity and we refinanced and pulled all but 5k out of the deal. Around Sep 2021 we will have all of our money out of the deal and reserves completely built from the returns on this property. This was a homerun in my book!

Update: House is now on its second tenant, who just signed a multiple year contract at $1800 a month. Cashflow on this property is now over $600 a month and we don't have a single penny left in the property....homerun!

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

ROI

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

Auction

How did you finance this deal?

traditional financing, then refinanced after the flip (BRRRR)

How did you add value to the deal?

Almost a complete flip