My 1st BRRRR started in 2017 before BRRRR was a thing!

[Justin Leach]

Investment Info:

Single-family residence buy & hold investment in Lompoc.

Purchase price: $325,000
Cash invested: $65,000
Sale price: $465,000

3/1 SFR, 1,210 sqft, 7,000 sqft corner lot on the 300 block of South F Street in Lompoc, CA.
Cap Rate: 6%

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

Cash-flow and appreciation

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

Family friends sent it to me.

How did you finance this deal?

I tactically was able to get 100% financing on this proeprty by leveraging my 401k for the 15% down and closing cost.

How did you add value to the deal?

Shortly after acquiring this property, I stucco'd the outside which dramatically updated the look and feel of the property. Additionally, I cleaned up the landscape. Once completed, I had the property re-appraised and removed the PMI as I now has 80% LTV.

What was the outcome?

This was a great investment in the years I owned this property, I never made a single mortgage payment since it was always rented. In those years, the tenants paid down my mortgage which allowed me to net out over $200k from the sale.

Lessons learned? Challenges?

Heavily vet your tenants. This will always pay off.

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

Myself. I sold the property myself without an agent.