A difficult project but successful addition.

[David Caradonna]

Investment Info:

Single-family residence other investment.

Purchase price: $138,000
Cash invested: $80,000

I purchased a home to BRRRR. I used hard money, a network of wholesalers, and a local contractor to complete the project. Every inch of the home needed repairs and we ended up spending over $20,000 more than we anticipated. We also had to fire the first General Contractor who was taking money, and not completing work. We thankfully got the project completed in a pretty quick timeline because I stayed focused, dealt with issues and made decisions immediately instead of fighting with the contractor and my own thoughts. I designed the home with the help of my wife and contractor who came up with ideas as the job went on and walls opened up. We changed the floorplan for a much bigger kitchen and large master suite.

After 90 days, we had the home staged, professionally photographed, and listed for rent. Within 12 hours we had our tenant signed, 1st month rent and security deposit transferred, and they move in this month. The home will cash flow around $600 currently with the HML and when we refinance the home will cash flow $500-$600 depending on the appraised value and interest rates.

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

I have always been a long term buy and hold investor. I wanted to venture into BRRRR and fix and flip to learn the process. Now that I have, I am ready for more.

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

Local wholesalers.

How did you finance this deal?

Hard Money

How did you add value to the deal?

We replaced everything. The roof, the hvac system, plumbing,. We also reframed the master suite and relocated the kitchen.

What was the outcome?

Home is cash flowing around $600/m as of right now and will continue to cash flow when refinanced.

Lessons learned? Challenges?

You can do everything right in the home but you cannot change the location. We will be pickier with the neighborhood and street it is on as there are commercial buildings on each side which brought the value down.