This is a SFR in Baton Rouge that we BRRRRed. We were all in $162,697 (including closing costs, rehab, interest, utilities) and it appraised for $200,000 when we did our refinance. Our rent is $1750/month and we have a 30 year fixed mortgage at 5%. It is a long term hold for us, since the bones are good and the interior is fully updated. We will need a new roof at some point in the next 5-7 years though. We borrowed all of the money for the deal, so $0 of our own invested.

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

I love the BRRRR method since I don't have much money, but a lot of hustle. Brick 3/2 on slab foundations that are out of date is our bread and butter.

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

I had a cold called last year and apparently he called the lady, who at the time was not ready to sell. She called me about a year later and said she was ready and her price was $115,000. I ran the numbers and it worked for us, so we locked it up.

How did you finance this deal?

We used a local bank commercial line of credit, which is really an interest only 90% purchase and rehab loan. We also borrowed 20k private money to give us breathing room.

How did you add value to the deal?

We refinished the floors, completely redid the kitchen, painted, replaced vanities, toilets, sprayed the tile in the bathrooms with enamel paint, replaced sliding glass doors, HVAC, interior doors, and regrouted and coated the sunroom brick floor, repainted the siding on the exterior, and had some minor landscaping done. We did roughly $42,710 in rehab.

What was the outcome?

We have a tenant in there paying $1750, so after roughly 21% for vacancy, repairs and maintenance/CAPEX and our note including insurance and taxes, we are cashflowing around $295/month. The property appraised for $200,000 for our cash out refinance and we have it locked at 5% for 30 years. We got nearly all of our money out, but ended up with around $5k left in the deal.

Lessons learned? Challenges?

We had our contractor repair some of the hardwood floor and they did it wrong, then did it again wrong, so we learned to keep more complex flooring work with actual flooring contractors. Also our floor stain was lighter than we expected so we had to do two coats, which took forever to dry and we ended up having to reschedule a ton of showings.

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

Our local bank is good for anyone in Baton Rouge. Besides that, our title company, Title2Land is also great for investors.