Mount Dora Partial Live-in Cash Flow Positive BRRR & Flip

[Jessico Bowman]

Investment Info:

Single-family residence other investment.

Purchase price: $74,900
Cash invested: $10,000
Sale price: $185,000

Bought, live-in renovated, refinanced to buy another property, moved out and rented to tenant for $1,000/ month (cheaper rent with tenant making renovations for reduced rent) rented last year owned for $1600/month - cash flow positive even at $1,000/month. Sold for $84k over note profit.

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

REO no one wanted because it was tented. Very low entry point for the area. Close walking distance to downtown area.

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

Creative REO agent. Fannie Mae property.

How did you finance this deal?

Conventional loan through Sun Trust Bank. Pulled money from 401k as a loan and borrowed $5k from parents. Paid back parents couple months after close.

How did you add value to the deal?

House needed flooring. We were in the flooring business at the time. Had wholesale access at cost to flooring and installers at cost. We were handy and lived in flip until cosmetically rental ready. Mount Dora FL does rental inspections. House had to pass this inspection and be considered by city rental ready. Father in law is a master electrician so brought outdated electrical up to code.

What was the outcome?

Purchased in 2015 as an REO. Self Renovated at low wholesale cost, refinanced to buy next flip, Rented to handy tenant for reduced, yet cash flow positive by $400/month, $1000/month rent for cosmetic repairs and maintenance. Rented last year at $1600/month $1000 profit. Sold at an $84k profit in early 2020.

Lessons learned? Challenges?

Hard to live in a flip due to living in a construction zone. Loved the handy tenant idea when we moved out. We held for market to rise in Florida. We loved the house. Would pull back into portfolio one day at good price. Learned a lot. Trained in electrical under my father in law.

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

Everyone I worked with in this deal was awesome. Feel free to message me for details in this area.