When a BRRRR is a home run!!

[Bobby Brown]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $104,000

Bought a bank owned property for $104,000. All in rehab and purchase totaled $181,000. After 6 months it appraised for 250k and I did a cash out refinance to get 100% of my cash out and the extra paid for all closing cost.

Monthly rent = $4,580
Monthly PITI = $1,100. approximately. (that was PITI since 2016. Just cashed out refi again in 2022 with new loan. $1,630 PITI)
Monthly expense = $850
Net monthly cash flow = $2,100.

5 bedroom 4 bath home with a pool. Appraised over $408,000 in Feb 2002.

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

I knew after renovating this home it would significantly add value and the rental income would be great even after refinance.

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

It was a total fixer and a bank owned listing. I paid asking price for it.

How did you finance this deal?

Cash from savings and then did cash out refinance after the renovation was done and 6 months passed.

How did you add value to the deal?

Renovation.

What was the outcome?

It appraised were we needed it to appraise 6 months later and I was able to pull out 100% of cash invested and didn't have to come up with out of pocket closing cost. Monthly net rent has been consistently amazing because of the rental market in this area.

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

I represented myself as a buyer since I am a real estate broker. The listing agent represented the seller.