First BRRRR property was a success! Plymouth, MI LTR

[John Cannon]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $193,000
Cash invested: $40,000

First BRRRR property was a success!

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

Met the 1% rule. Largely cosmetic rehab.

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

Off-market

How did you finance this deal?

25% down up front (~$45k) + Rehab ~$40k. Refinance to come in July.

How did you add value to the deal?

Outside: Removed large tree in back, added and cleaned up landscaping, removed deck and poured new concrete deck, added new siding in places, replaced gutters and covers and replaced all lights, doors/storm doors.

Inside: New doors, new drywall in many places, new paint in all rooms and baseboards. Removed 11ft of wall to open up kitchen, new kitchen cabinets, new electical in places, new plumbing in kitchen. New vanities in bathroom, new light fixtures, new towel racks, all new appliances.

What was the outcome?

Rented to a family with rent being paid via their insurance company

Lessons learned? Challenges?

You will go over budget.

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

NA