First BRRRR from auction and first real estate investment project

[Maxwell Weiss]

Investment Info:

Single-family residence buy & hold investment in Colorado Spgs.

Purchase price: $155,500
Cash invested: $155,500

We landed this property at auction for $29,000 over the starting bid and paid for it with our own capital.It's an old house in need of a complete renovation but is in an ideal location. The house is a little over 1100 sqft with 2 bedrooms, 1 bathroom, living room, dining room, and office. After renovation the house is assessed to be worth $285K-$315K. We plan to furnish the house, market it as a corporate rental and rent for around $2,300/month.

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

We have been interested in buying at auctions because it's a good way to acquire properties below market value. Single family homes in our market have above average annual appreciation and we live in a hot rental market so our strategy is to buy, hold and rent to maximize profits.

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

We found the deal in the foreclosure listings through the office of the public trustee website

How did you finance this deal?

We used personal capital to buy at auction, a hard money lender to finance the rehab, and a conventional loan to remove personal capital

How did you add value to the deal?

Buying this foreclosure at auction allowed us to buy well below market value. For the poor shape the hose is in, it is still retains a relatively high value due to its location. By rehabbing it we have created a nice home in a very desirable location, boosting its value. We plan to furnish the home and market it as a corporate rental which will increase monthly cash flow

What was the outcome?

None yet! will keep you updated

Lessons learned? Challenges?

Still learning!

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

Civic Financial Services