First BRRRR Deal

[Andrea Dykman]

Investment Info:

Single-family residence buy & hold investment in Dover.

Purchase price: $22,000
Cash invested: $35,000

1st BRRRR deal

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

This deal for me was a home run and safe bet. Even if we didn't want to rent this home out I could easily sell it for more than I had in the deal. So it was a no brainer to pick up. Great house in a nice area of town.

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

This was my first deal that hadn't been my primary residence. I found this seller off market in my area wanting to sell her rental house. She set the price "AS IS" 3 bedroom 1 bath 1 garage home. She had been burned by previous tenants and did not want to be a landlord anymore mostly because she didn't live in the area. We bought the home had a contractor rehab it for 13k just minor interior work paint etc. This home rents for $930. We bought it cash and were able to BRRRR this property.

How did you finance this deal?

We used our cash to purchase but then to BRRRR it we went to a local bank to start the BRRRR rolling. The property was evaluated at 68K and we were able to take out 54K for the next home.

How did you add value to the deal?

We had a contractor come in a do 13K worth of remodeling on the inside added LPV flooring/paint/new cabinets/new counter tops/new appliances. Agreeable grey and white

What was the outcome?

This home rents for $930 and is a part of our long term investment property.

Lessons learned? Challenges?

We have struggled finding a reasonable contractor. The one that worked on this home was inexpensive but took almost a year to complete the project.