Churchill downs area 3/2 and 4/1 near BRRR side by side.

[Jay Leisten]

Investment Info:

Single-family residence buy & hold investment in Louisville.

Purchase price: $51,000
Cash invested: $6,000

Light rehab single family 3/2 and 4/1 that we expected to full BRRR in the 2 months.

Weve converted these to long term financing now and had to leave about 3k in them so not a full BRRR but they are starting to provide a return now. we had a furnace and waterheater failure in the second one which was unexpected.

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

Proximity to university and rent returns in relation to purchase and rehab cost.

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

One of my contractors introduced me to another investor who was downsizing.

How did you finance this deal?

Hard money that converted to long term lending month 6.

How did you add value to the deal?

New furnace and water heater in one, as well as paint, flooring, new garage doors and gutter.

What was the outcome?

missed a full BRRR on one due to the furnace and waterheater which were unexpected additional costs, but now that long term lending is in place, expected cashflow is 200-300 for the pair per partner depending on reserves.

Lessons learned? Challenges?

Our contractor disappeared the last week of renovations, which meant I had to hang gutters and make some minor repairs along with my wife and a friend. Also, weve learned to get the bug man in early to treat, as one of the 2 had a pretty bad roach problem that needed to be remedied prior to placing a new tenant.

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

Im a licensed realtor so I handled the transaction, we worked with Surepoint equity on the hard money, and our usual closing/ title team at Rounsavall Title Group.