Abilene Texas BRRR

[Account Closed]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $14,000

3/2 1450 sqft

Original Projections
PP $62,000
Rehab $33,000
Target Appraisal $120,000
Target Rental Income $1250/m

Final Numbers
PP $62,000
Rehab $50,000
Appraisal $172,000
Rental Income $1600/m

Purchased with Hard Money loan (10% down, rehab fully funded with draw schedule, interest paid on entire rehab budget through entirety of the loan.)

Refinanced using DSCR loan using same lender. Left $42,000 in the loan and pulled about $30,000 out after closing costs etc.

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

Found through Agent on BP who connected me with the wholesaler that had posted the deal.

How did you finance this deal?

Hard Money / DSCR Loan

How did you add value to the deal?

General rehab,floors, bathrooms, kitchen, paint, HVAC, upgraded electrical, windows, roof.

What was the outcome?

We were able to pull our initial investment + an additional $15,000 while keeping new equity within the home and holding onto a cashflowing asset.

Lessons learned? Challenges?

Inspections will only uncover so much, look for red flags. Poor DIY improvements = hidden costs.

Layers of subfloor used as a bandaid for rot. We had to replace an entire additions framing as a result.

When troubleshooting a backed up sewer line we discovered the original owners had tied their lines into their neighbors. The fix was digging up all previous lines and a 150ft trench to the main line in the back alley.

Issues with replatting/combinging 3 different lots