My second deal in 2018

[Mitch Horwart]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,000
Cash invested: $34,000

This was a 2 bed 2 bath condo that I BRRRR'd with a partner.

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

The BRRRR strategy is the most appealing to me as an investment strategy and this seemed like a good deal to try my first BRRRR.

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

MLS - I negotiated through my agent, and after 3 counter offers we were able to get the property $20,000 below asking price.

How did you finance this deal?

Finance with conventional financing putting 20% down. I partnered with a colleague that had been looking to do a deal and he provided the down payment. Then I performed and funded the renovation.

How did you add value to the deal?

I added value by finding the deal, then funded and performed the reno. I also filled the unit two months after closing and am managing the property myself.

What was the outcome?

Cash flowing $300/month and we were able to REFI to recoup the down payment that we put up to purchase.

Lessons learned? Challenges?

This was the first and last renovation I will do by myself. It was great to learn everything I did, but at the end of the day was not worth the time and stress of doing the work. I will sub-contract all work moving forward, which just means finding better deals!

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

My agent was Lauren Mielke with BHHS, and my lender was Gabe Kopun with Metro Credit Union. Gabe was a staple in this deal as he was able to get us an 80% LTV Refi.