Buy and Hold - Future BRRRR.

[Matthew Tyson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $125,000

Picked up this house from a wholesaler at a great value. Very little work needed to get it ready for tenants. Crushed the market rents and went from closing to tenant in place in less than 30 days. Will wait for seasoning period to pass to complete the BRRRR with a current ARV of $185k+.

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

The home was in great condition and offered far below market value with very little Capex needed.

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

Wholesale transaction.

How did you finance this deal?

Cash 

How did you add value to the deal?

Not much value needed to be added other than some light electrical work, appliances, and rent specific needs.

What was the outcome?

Off market in 6 days with multiple applications submitted at asking price.

Lessons learned? Challenges?

Never trust that just because a property has passed city inspections on a remodel, that the work was performed well. Always get an inspection. Biggest challenge was that initially the home did not have main power connected from city. I committed to seller that I would purchase once I could confirm power was on and get my inspector inside. I was prepared to walk away but this kept the deal on the ropes for over 2 months before we contracted to buy. Once that was done, we closed quick and got to work. 

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

My wife is our Realtor, she listed property. Wholesaler and Title company to close deal. Self managing. I have a great inspector that I could count on to dig deep into the house.