BRRRR in Arlington Texas

[Chad Smith]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $90,000
Cash invested: $20,000

I purchased this property and used cost segregation to offset a very profitable year running the Chad Smith Team as a Realtor. I put 20% down on a conventional loan, rehabbed the property, rented it out, then refinanced all my cash back out of the deal... BRRRR. I have 30 year fixed debt on this property, $500+ per month average cash flow, and over $140,000 in equity as of the fall of 2023.

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

Cost Segregation + BRRRR. On top of that, this property is in my buy box, and I know this market very well.

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

An Agent brought it to me.

How did you finance this deal?

Conventional to start... I held for 6 months and then refinanced to a 30 year note @4.25%.

How did you add value to the deal?

Complete rehab. It's a townhome, so the foundation was not a factor.

What was the outcome?

An excellent BRRRR that I still hold as of the fall of 2023.

Lessons learned? Challenges?

This one had extensive foundation work that was managed by the HOA. It all worked out in the end... However, I had to wait for them to finished the work and had little control of the timeline.