Perfect BRRRR with minimal amount of work

[Daniel Tanasa]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $210,000

Getting paid to buy prime real estate is about as sweet of a deal as it gets for a buy and hold investor. After a perfect BRRRR, I pocketed 1k in profit and created 60k worth of equity. But the best thing about it is that I own this amazing house with all brand new big components. New roof, new siding, new plumbing, new electrical system, new kitchen, 75% of windows are brand new and fully renovated house.

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

Great area, good school district and I have another house 2 minutes away from this one.

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

The seller contacted me after sending her a postcard about the property. She had 2 other investors look at the property but seems like she liked my offer the most. She mentioned that she had one higher but the person wasn't very serious, so she went with my offer.

How did you finance this deal?

Purchased it for 210k with a private money loan that financed 100% of the purchase price and 100% of rehab. All I had to bring at closing was $1,081.50 for some closing costs.

How did you add value to the deal?

The house was affected by a fire and most of the rehab was done by the pervious owner on the insurance. The only things left for me to do was to add appliances in the kitchen, add a fence in the front and had a lot of tree that were almost falling on the house after hurricane Baril, so I had to spend almost 5k in cutting the trees. I put about 10k total in the property.

What was the outcome?

The ARV came back at 300k. I have a lender that was willing to do a refinance at 80% LTV on a DSCR loan, so after the escrow account for taxes and insurance, closing costs and everything, I got a check at closing for $2,201.91. So basically, after everything was done I got paid $1,120.4 to buy this house and created about 60k worth of equity in the process. Not to mention that I own log term this beautiful house in a nice suburb of houston, where all the big components are brand new and expectin

Lessons learned? Challenges?

Cutting these big pine trees that we have in Houston can get really expensive.

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

Worked with a great lender on the refi side and I will be happy to share his contact if anyone is interested.