My first BRRRR - Davenport IA

[Nicholas Z.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000
Cash invested: $15,000

4 beds, 2 baths former up-down duplex.

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

I was looking for a BRRRR.

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

My first BRRRR property. Found on the MLS by my realtor. Asking price was $59,900 and their realtor said their lowest acceptable offer was $57,900. I offered $55,000 and they accepted.

How did you finance this deal?

I did a construction loan for the purchase price and used my LOC for a down payment and part of the repairs. I used a 0% credit card for a chunk of the materials.

How did you add value to the deal?

I added $30,000 in fixes to the property. New gutters, new flooring, fresh paint, new appliances, waterproofed basement, patched up walls, landscaping.

What was the outcome?

The property appraised for $100,000, and the bank allowed refinancing 75% so I could pull out $75,000. That left about $16,000 in the deal. It rented for $1350/month, so monthly cash flow is over $300/month and cash on cash return over 20%.

Lessons learned? Challenges?

The rehab was delayed because it started in December and the weather prevented some of the outside work from being completed. I'll try not to do a BRRRR with outside work during the winter again.

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

This deal was found by Elijah Grant. Cory and Victoria Gamble managed the rehab.