finished a BRRR

[Andrew Zavage]

Investment Info:

Single-family residence fix & flip investment in Pittsburgh.

Purchase price: $80,000
Cash invested: $72,900

Project complete. Waiting on permanent financing to close. The ARV value came back at $201,000 and a condition rating of C3 with a reported median rental figure of $1,595. The entirety of this project was financed by a HELOC, and at closing, we will wipe out our debt incurred to complete this project. No CF figures until we have an executed lease in-hand.

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

familiarity with the market, value-add, chance to make something out of nothing.

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

with my agent, knowing the numbers, and finding the correct kind of distressed situation.

How did you finance this deal?

HELOC & bridge loan thru Truly Investor Capital (if you're interested, let me know and I can broker for you or refer you!)

How did you add value to the deal?

roof replacement, all new floors, new finish plumbing, interior cosmetics, appliances, fixtures, and just knowing the area of town

What was the outcome?

so far so good!

Lessons learned? Challenges?

with a flip, a firm majority of lenders on the permanent refinance side require a minimum of 6 months of title seasoning. That severely limited the number of lenders I could go to, so I ended up finding a loan product (that costs a premium, albeit) thru Velocity Capital Mortgage that allows fully-amortizing or IO payments (for first 10 years) which will help me build cash flow and accrue title seasoning while I find the right time to pull the trigger on a fully-amortizing DSCR product

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

Myself =D
Christian Petrozza, Realtor
Nulf Management Services, a PA-licensed GC