Antioch BRRRR Project

[Kevin G.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $420,000
Cash invested: $55,096

Purchased a distressed single-family home in Antioch, CA, using the BRRRR strategy to create $141,000 in equity and secure a cash-flowing rental property. This deal leveraged strategic financing, value-add renovations, and market knowledge to deliver a strong return.

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

Antioch is a growing market with strong rental demand and opportunities for appreciation. The property had significant upside potential as it was priced below market value and required mostly cosmetic updates. This deal aligned perfectly with my strategy to build equity and cash flow while leveraging hard money financing and refinance opportunities.

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

Discovery: I found this property through a local wholesaler specializing in off-market deals. It was in rough condition, which limited competition and made it a strong candidate for the BRRRR method.
Negotiation: After analyzing comps and repair costs, I negotiated a $420,000 purchase price, which was below the market value for similar properties in the area. I emphasized the quick closing timeline and my ability to pay cash via hard money financing to strengthen my offer.

How did you finance this deal?

Initial Financing: Used a hard money loan (HML) with 10% down, interest-only at 10.95% for 1 year. The HML covered 100% of the $32,500 rehab budget through drawbacks.
Refinance: Post-rehab, I refinanced into a primary mortgage, creating 25.5% equity in the property.
Future Financing: I plan to leverage the property with a HELOC to access up to $86,000 in capital for future deals.

How did you add value to the deal?

Rehab Scope:
Cosmetic remodel: Painted the interior/exterior, updated the kitchen cabinets and countertops, and installed new flooring.
Modernized fixtures: Replaced light fixtures, outlets, and switches throughout.
Enhanced curb appeal: Painted the brick exterior, added landscaping, and modern black accents.
Timeline: Completed the rehab in just 4 weeks to minimize holding costs.
Strategic Upgrades: Focused on cost-effective improvements like vinyl flooring and fresh paint, wh

What was the outcome?

Equity Created: $550,000 ARV - $409,000 loan balance = $141,000 in equity.
Cash Flow: The property rents for $2,950/month, covering all expenses and generating slight positive cash flow.
HELOC Potential: Post-refi, I can secure a HELOC up to $86,000 (90% LTV) to fund future investments.

Lessons learned? Challenges?

1. Finding Value: Identifying properties with strong upside potential is critical in markets like Antioch.
2. Rehab Management: Staying under budget and on schedule ensures better cash flow and quicker refinancing.
3. Leverage Matters: The HELOC strategy allows me to scale quickly and acquire more properties without tying up personal capital.