BRRRR Project gone right

[Dennis Bruce]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $105,000
Sale price: $388,000

BRRR deal gone right.
House was sold by my son in April 2022, seller called him 6 months later telling him to sell it immediately.
We ended up buying for less than half of the April sales price. Big reno, self managed, went smoothly,
We expected to come in at 350k on the refi appraisal and it came in at 388k. We decided on a 65% LTV option (252k)
- now a cash-flowing rental

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

We ran numbers on different scenarios - BRRR was easily the best option

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

My son - a real estate agent/investor - got a call from the owner who he originally sold the house to. Owner was in distressed situation (as was the house)

How did you finance this deal?

Purchase: Paid cash
Reno: Combo self funded and private investor/partner

How did you add value to the deal?

We had to upgrade the systems - no choice.
We decided to push the finishes to more high end stuff (granite counters, mid-high end LVP flooring throughout) and adding a 3rd full bath that was already partially roughed in as a half bath). We also decided to put in a new driveway as the old one was heaving due to the pines so close to it (which we also took down.

Finally .... The house had an olympic sized pool that was in disuse and over grown with weeds and saplings! Took it out!

What was the outcome?

Recouped all investment (purchase + reno costs) and added $25k to our prop investment acct.

Lessons learned? Challenges?

We self- managed the reno which was more cumbersome, BUT having it under our control more than compensated for it

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

My son Danny Bruce from Exp Realty -