First-time Out of State BRRRR

[Gurgagn Chand]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $35,000

First out of state BRRRR. Located in the Point Place neighborhod with Washington Local School District in Toledo, OH.

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

I wanted to expand onto other investment strategies to build equity through the BRRRR strategy rather than just buying investment properties off the MLS. Does not cashflow great as my other long-term buy and holds but got some build in equity off the deal and property is located in a desirable location making it a great component to my overall portfolio.

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

Off market deal brought to me by a real estate agent I worked with to purchase my first out of state investment property. I was able to offer quick closing to help the seller out in offloading the property.

How did you finance this deal?

Downpayment was through personal savings from my 9 to 5 and remaining financing for purchase and rehab came from hard money lender (Easy Sreet Capital).

How did you add value to the deal?

Renovated the property by providing substantial updates. Includes new flooring, paint, kitchen, HVAC, siding and cosmetic updates.

What was the outcome?

Refinanced the property for a higher than expected value and was able to pull out my initial investment.

Lessons learned? Challenges?

Did not budget for new siding. Old siding could not be salvaged as originally thought through minor repairs. This caused an unexpected cost of ~ $12k. Thankfully there was enough meat on the bone where it did not cost out of pocket.

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

Arman Singh is an amazing real estate agent. LPG Management provides exceptional remodeling services. Easy Street Capital is a great hard money lender and they have an easy to navigate and quick draw process and CV3 Financial was able to assist with the refinance.

[Kyle Mccaw]

@Gurgagn Chand congrats. I would call that a great win and solid purchase for building long term equity. So many people get hung up on the cash flow. Yes it is nice to have. But the equity capture is my favorite part of the BRRRR.