Old Home Complete Rehab base hit BRRRR

[Benjamin Fritz]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $190,000

This property needed pretty much everything. Foundation, new HVAC, Plumbing, electrical, Flooring, Windows, Bathroom, Kitchen, etc. Everything is pretty much new. Probably overspent on rehab, but the house should be maintenance free for years to come which makes management easier.

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

This deal when I bought it had as an exit a Flip, or BRRRR model would work. So far I haven't done either. I am just holding it as free and clear. I will probably cash out refi at some point even though I will have to leave some cash in the deal.

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

Wholesaler deal

How did you finance this deal?

I had cash for purchase and rehab

How did you add value to the deal?

Added a bedroom, and bathroom. To make it a 3/2

What was the outcome?

Right now it spits out good cashflow and I should have about 30k worth of equity over the cash I have in the deal.

Lessons learned? Challenges?

Old homes take a lot of money to fix. Just go in with all new things, don't try to keep old windows for example. In rehabs add 15% over your budget for extra expenses.

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

I am the pro! :)