Live in BRRRR in Ohio

[Aaron Gobble]

Investment Info:

Single-family residence other investment in Akron.

Purchase price: $115,000
Cash invested: $16,500

This home is a live in BRRRR type strategy. Rehabbing the home while living in it will bring the value to close to $175k. After finishing, move to the next home, rent this one out, and refinance it (given that rates don't skyrocket), and continue with the same strategy on the next home.

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

I was already renting the home, and was able to purchase the deal off market.

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

Found the deal through family, and negotiated a 6 month lease-purchase, with the majority of the lease payments going to pay down the purchase price.

How did you finance this deal?

First 6 months was financed through the homeowner, and then bought using a traditional 30yr mortgage.

How did you add value to the deal?

Kitchen, and bathrooms gutted, new flooring and paint throughout the home. Purchased used oak cabinets for a total of $475 that are being utilized in the kitchen, lower bar area, and laundry room. Flooring for half of the home purchased from a wholesaler for $1000 with minor defects, and lower level will utilize LVP flooring. Comps are showing $175k +

What was the outcome?

Currently living in the home until work is completed. Original plan was two years, but that timeline may move up if they right follow up deal comes along.

Lessons learned? Challenges?

I never want to sand cabinets again. The time taken to do so has outweighed the cost benefits. The roof was supposed to be redone through insurance, but we chose a bad contractor who ended up taking the deposit, and disappearing. The insurance claim expired before we were able to get the work done. I'll be redoing myself to save money, but will no longer be putting a metal roof on the property like originally planned.

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

I myself am an agent, but this property was done completely off market to keep purchase price low. The team that I work on has over 100 doors, and also a home flipping partner. The knowledge gained through them has been the main reason for joining the team.