Flip turned BRRRR No. 1

[Dan V.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $44,000

Longest project so far. We have to replace everything except the framing and reconfigure the floor plan to make it more open and functional. Got caught with the rising interest rate and has been sitting in the market for weeks so we decided to hold it. Closing on the refi in few days and will get initial investments back.

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

Got it cheap and lots of potential

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

Wholesaler

How did you finance this deal?

Hard money lender and cash

How did you add value to the deal?

The only original part of the house the framing so we replaced almost 95% of the house. We also reconfigured the floor layout to make it more functional and open.

What was the outcome?

Longest project so far, took us 16 months to finish it. Listed on the market for sale but not getting offers. We looked at the rent and will be ideal for BRRRR so we decided to hold it. Found a bank to refinance it so we will be getting our initial investments back.

Lessons learned? Challenges?

The property is no longer conforming with the current city code. We have to go thru a CUP process which took months to be approved. We also have challenges finding contractors due to the scope of work.