Another BRRRR - not as much cash flow but the equity was there.

[Gabriel Miritello]

Investment Info:

Single-family residence other investment.

Purchase price: $65,000
Cash invested: $70,000

The house was all about building equity and the long term game. This home also taught me 2 important lessons - it never hurts to ask and just because a contractor was good before doesn't mean he'll be good next time.

Never hurts to ask: The original MLS list price was $125K it dropped to $110K after 30 days and finally dropped to $95K after 3 months. I had my realtor reach out with a $60K cash offer. They countered at $70K and we settled at $65K. After putting in $70K in reno, I was all in at $135K. I pulled 130K out and it was appraised at $185K. Its now rented and after all expenses and money set aside it brings in $100 a month. Potential to refi in a few years for a lower rate(currently at 8.675%).

Previous contractor who was good went bad - I will say that i am sure i have some fault, but he never let me know what it was to correct. We have done 2 previous full renos with him and decided to use him here. Towards the last 50% his progressed slowed dramatically. Took a 3 month reno to 5.5 months and left some items incomplete. He basically took on to many projects without enough crew. And i feel abused our past relationship to violate our timeline so that he wouldn't loose new customers. The worst part was that he would be posting on twitter working on other projects when he should have been on mine. I thought of pulling but didn't want to switch so far in and having not paid him all cash acted as a carrot to finish it up, though it took longer then it should have. Onto the next contractor.

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

It was sitting on the market for a very long time.

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

MLS - swing for the fences and offer a low ball offer

How did you finance this deal?

Cash - from previous BRRRR

How did you add value to the deal?

Complete reno

What was the outcome?

$100 cash flow and $50K equity

Lessons learned? Challenges?

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