Tucson 4 Bedroom 2 Bathroom BRRRR

[Andrew Rodgers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000
Cash invested: $25,000

For this property, we followed a traditional BRRR with a seller finance to acquire the property.

It's a 4 Bed 2 Bath Single Family Residence south of Tucson. We were able to find the home at $155,000 and financed it at 10% down and 6% interest. The great thing about is that we were able to stay in the home for a year as we fixed up the property, and after the year was up we refinanced into long term lending with zero down payment because of the equity gain from that year.

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

The creative financing aspect of it was interesting. Also, the fact that it was in a different city midway through Covid. The challenge of going and learning a new city and making friends was more appealing than just being stuck at home.

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

The deal came through my business As-Is Cash Offer. The seller was reached out to by cold-call.

How did you finance this deal?

The deal was seller financed: 10% down, 5% interest and a 1-year no sale clause.

How did you add value to the deal?

We added value by living there and doing a light light remodel. We did little things like new floors and new paint, then called it a day.

What was the outcome?

The outcome was a cash flowing rental with over $100,000 in equity. The rental is awesome and because of its location south of Tucson we're able to find qualified renters from neighboring companies like Raytheon or the U of A technical park.

Lessons learned? Challenges?

The big takeaway again is to expand my horizons and follow the deal.