My Second BRRRR Deal - Proof of Concept

[Winston Reed]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $107,000
Cash invested: $32,000

Used proceeds from my last BRRRR project to purchase this 3/2/2 SFR to rehab and rent. Appraisal came in low at $135k, so we did not get to cash out on the refi, but cash flow was strong and property has since appraised for $160K.

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

I became an accidental landlord when we bought our new house and had been renting our first house for a few years. I decided to test the BRRRR strategy by getting a loan to rehab the property (I owned it free and clear), then refinancing it to pull out the remaining equity. It worked, so I decided to buy this house and do it again.

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

This deal was on the MLS.

How did you finance this deal?

Hard-money initially, and then refinanced it for 30 years fixed.

How did you add value to the deal?

We leveled the foundation, added new vinyl plank flooring, new HVAC system, remodel baths and kitchen and added stainless appliances. Interior and exterior paint and all new fixtures.

What was the outcome?

Successfully completed rehab and refinanced into long-term, 30-year fixed debt.