Live and fix first BRRRR home

[Benjamin Emery]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $415,000
Cash invested: $80,000

Still living in and renovating. We plan to be finished by the end of August 2023

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

This property has a separate upper and lower level, detached garage and shed which will soon be an office.
The potential was enormous on this property and the right price.

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

Found on Flyhomes website. Through flyhomes we were able to buy a home with a cash offer on their behalf for $415k even though the owner had another offer on the table @ $450K. Luckily, they still chose us because it was cash.

How did you finance this deal?

Through Flyhomes. They offer cash offers as a double close deal. Extra fees will be associated with it, but cash is king.

How did you add value to the deal?

We rehabilitated 2 kitchens with new applicances, 2 bathrooms, removed old oil chimney, new siding, landscape, turned our shed into an office, added egress windows to two bedrooms in the basement, added 200amp power instead of the outdated 60amp while separated the supply into two panels for upper and lower floor, modified threshold openings to make larger to allow more light, new doors, new fence.

What was the outcome?

We are still in the process. We're planning on being finished by the end of summer 2023

Lessons learned? Challenges?

Before purchasing our next home, if the electricity is old, I would get an electrician to look before purchasing to make sure it's up to code. This was a mistake the inspector didn't catch. The electrical supply drop was an outdated 60amp when the panel was listed as 200amp. We still haven't fixed this yet, but we received one quote for $30k and one for $8k and $6k.

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

Flyhomes is great if you know what you want. Don't expect the person showing the home to have any knowledge about anything really. They are considered the uber of real estate agents meaning you can usually receive a tour of the home the same day you request it. Cash offer for 5% down is a big carrot on the end of the stick.