UPDATE on our 1st BRRR in 2019

[NA Negrete]

Investment Info:

Single-family residence buy & hold investment in Tumwater.

Purchase price: $120,000
Cash invested: $74,000

*** UPDate on 2019 off marke deal. Our 1st BRRR. recap = PP$120K/Rehab-all cash in $74K Refinance $317K Cash Flow in 2020$189.00 Cash Flow in 2024 $650.83 No issues with Tenants (fingers are still crossed!) This property is in a great location and has a nice size. We have space to add an ADU.

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

We first wanted it to fix and flip but after reviewing the #'s it worked great for a BRRR.

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

Driving for $. We use to go driving every Sunday and pin properties on our map that looked like they needed some love. Then we would send a letter and keep sending them.... With this property the Seller finally called, we talked. Built rapport and I continued to follow up with her for 2 yrs. She was finally ready. A good slow dance is what I call it. I listened over the years and knew what she was looking for. I was able to find a new place for her tenant and pay the deposit for him.

How did you finance this deal?

We used hard money and then refied with them once we had a lease signed.

How did you add value to the deal?

By rehabbing right we were able to charge more for rent. When you have a higher rent the tenants tend to care more for the home. Usually, that has been our experience.

What was the outcome?

We still own this property. Rent rate is now $2024.00 and is cash flowing $650.83/mth. Which... has been paying our other rental's mortgage because those tenants haven't paid sinse 2022. (The Sheriff finally posted the noticed last week and they finally are vacated!!!)

Lessons learned? Challenges?

We have learned to definetly FOLLOW-UP, FOLLOW-UP, FOLLOW-UP... And than, FOLLOW-UP more. Know your numbers and don't let your emotions get in the way. Make your property nice and the tenants will appreciate it. Oh! have a great PM company too.

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

I would 100% recommend Israel Lopez with Certain Lending