Virginia Beach SFH BRRRR

[Nico C.]

Investment Info:

Single-family residence buy & hold investment in Virginia Beach.

Purchase price: $145,000
Cash invested: $34,000

Snapshot Metrics:
Purchase Price: 145k
ARV: 186k
Renovation Expenses: 34k
Rent: $1495
1% Rule = 1.03%

This was our best BRRRR to date - though we gave ourselves a "C-" on execution. We purchased the home from a distressed owner who was eager to move on to the next chapter of his life. We bought it all cash at 145k. As you can see, we went to great lengths to ensure the home was raised to a high standard.

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

MLS

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

New Items: Roof, flooring, backyard fencing, appliances, countertops
Enhancements: Paint, fixtures, landscaping

What was the outcome?

Despite how much work we put into the property, we only ended up achieving an ARV of 186k + walked away with 133k after our refinance. We are happy that we recovered 92% of our acquisition capital, obviously we were hoping to leave much less in the project.

Lessons learned? Challenges?

Biggest Lesson Learned: Square footage sets a ceiling on the ARV.

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

Stephanie Clark REMAX Alliance Virginia Beach, VA - I cannot recommend this organization highly enough.

[Patti Robertson]

It is very pretty, but at that investment to rent ratio, you paid way more than you need to for a rental in our market.  It’s OK as your first one as a learning process, but you can buy at 100 times rent in Hampton Roads fairly easily.