BRRRR Deal in Nampa Idaho

[Corby Goade]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $185,000
Cash invested: $220,000

This deal was brought to us by a wholesaler that we work with regularly. Numbers worked well as a BRRRR. Purchased for $185k and fully renovated the home down to the drywall and installed an A/C, sprinklers and light landscaping for $25K. Rehab took approx 6 weeks and tenant was placed shortly after at $1750.

Have not refinanced yet, but will soon. Should have an appraisal in the range of $325K, so approx $100k in equity and we should be around 65% LTV.

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

There was built in equity and cash flow.

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

Worked with a wholesaler that I have done many deals with.

How did you finance this deal?

Heloc for acquisition and cash for rehab.

How did you add value to the deal?

Full rehab down to the drywall, added AC, sprinklers and landscaping.

What was the outcome?

Rented and cash flowing, over $100K in equity. Will refi and cash out in the future.

Lessons learned? Challenges?

I had several clients reject this deal because they were worried that the market might decline in value, so I picked it up. Action always beats inaction.

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

I am an investor, licensed agent and own a property management company. The seller was working with a wholesaler and a licensed agent.