Another Successful BRRRR

[Matthew White]

Investment Info:

Single-family residence buy & hold investment in Warner Robins.

Purchase price: $85,000
Cash invested: $95,000

I purchased this Single Family Home in Warner Robins through a wholesaler that I first located on Bigger Pockets Marketplace. On paper the ARV of this property is approximately $125k, but I was able to purchase the property for $85k plus closing costs.

I estimate that I will need to put approximately $20k into renovations (there is a serious plumbing problem, the roof and HVAC need love.) including dressing up the landscape.

Once rent ready, average rents for the area are in the arena of $1200/month. Upon 6 month seasoning, I plan on refinancing the majority of my cash out.

Once we are stabilized, I will update the performance of this asset.

UPDATE: Currently this property is rented for $1395/month on a 12 month lease. And as of today, I just cashed out financed this property. After the "re-fi" I have $0 in this property and I cash flow approximately $300/month after all expenses including PITI, CapEx, Repairs and Maintenance, PM, and Vacancy.

Not Too Shabby

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

This deal was a lucky find. I happened to come across this deal from a wholesaler around Christmas time. On paper this deal looked attractive.

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

I found this deal through a wholesaler and began negotiating for a proper sale price. The seller was very motivated and we found a mutually beneficial sales number.

How did you finance this deal?

I paid cash for this property (from the proceeds of my last BRRRR).

How did you add value to the deal?

Once closed, we repainted the property, fixed plumbing and other odds and ends. However this property did not need a ton of work because it was previously rehabbed.

What was the outcome?

Today I cashed out. Considering the cash into the deal, both purchase and rehab, then the proceeds from rents and the cash out refinance, I have $0 into this deal.

After all expenses, this property will cashflow $300/month.

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

I worked with a local wholesaler and the GREAT property manager on this deal.

[Matthew White]

Quote from @Rosston Smith:

@Matthew White Great job! What did you refinance at? Did you make the ARV? Also what was the sqft?

 So funny story...  The sq ft was higher than quoted.  During inspection, we "found" an extra bedroom so the property has approximately 1400 sq ft as opposed to the 1200 quoted on the listing from the wholesaler.

Also, not only did I hit ARV, but we exceeded it. I conservatively estimated an ARV of $125k, but at appraisal for the refinance we got an ARV of approximately $135k.

All around this was a banger of a deal.