House + ADU full BRRRR in OKC

[Carter Still]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $124,000

Single family house with ADU - repaired and replaced EVERYTHING

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

low entry cost, awesome neighborhood that is in path of expedited appreciation (new construction popping up on every street), two units.

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

MLS - I am a realtor, it was July 4th weekend, we jumped on it and made an aggressive cash offer with quick close. Ask price was $195K and we got it for $124K.

How did you finance this deal?

Private loan then cash out refi to bank loan

How did you add value to the deal?

completely repaired and replace both structures. We focused on the ADU first, rented it while finishing front house to cover our accruing interest,

What was the outcome?

got 100% of our cost back, and nearly hit the 1% rule on rents. PP: $124K, Rehab: $170K, Appraisal: $378K, Gross Rents: $2750

Lessons learned? Challenges?

Hire out work, only pre-lease to flexible tenants for favorable rents (rents went up significantly during rehab)