First time BRRRR "somewhat" success

[Jeffrey Couchara]

Investment Info:

Single-family residence buy & hold investment.

First time investor using BRRRR method. Single family row home, 3BR/1.5BA, now rented with long term tenant.

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

BP podcast and investor friend helped me pull the trigger.

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

Investor friend with property across the street gave me a tip it was hitting the market. There were 3 offers competing but we managed to get the deal done as asking with a $5K seller credit.

How did you finance this deal?

20% down, investor loan.

How did you add value to the deal?

Renovated entire home except the bathroom.

What was the outcome?

Was able to renovate and rent the home 60 days after settlement with a long term tenant and $500+ monthly cash flow.

Lessons learned? Challenges?

In hindsight, I would have crunched the numbers in more detail. At the time, I was unaware of the 70% rule and my cash on cash return just barely broke even. Severely underestimated the renovation costs and will definitely have a GC walk the home with me prior to making an offer next time. All in all, a great learning experience and some decent forced appreciation.