Smokin BRRRR Deal

[Jason Coleman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $98,000
Cash invested: $90,000

The "Smoke House" Best BRRRR we've done. We intentionally left cash into the deal after we refinanced because of the current interest rate environment. We were able to find a private lender who let us borrow 100k @ 7% interest for the next 3 years. Once rates settle (if ever haha), we will refi and pull out the rest. We found a lender recently who will give HELOC's on investment properties, it's not a bad thing to leave some cash in the deal. House appraised for 280k!!! We made 100k in one deal.

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

Off Market with Instant Equity

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

A realtor I know had a family member pass away who lived in this house. He did not want to deal with an emotional sale. Just wanted to get it off his plate asap.

How did you finance this deal?

Private money @12% interest only for 12 months. Refinanced in 4 months.

How did you add value to the deal?

Full gut Job. The only thing that is NOT new in this property is the water heater. New roof, added an HVAC ducted system, New floor, removed walls, new kitchen, new bathrooms, kilz, cleaned, and painted top to bottom.

What was the outcome?

Over 100k of tax free equity.

Lessons learned? Challenges?

Get a better scope of work from my kitchen and bath guy. The final balance came in 10k OVER where we expected. #notcomplaining.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a real estate agent. Investor first and foremost. I'm hunting for deals daily and offloading whatever doesn't fit into our portfolio.