Left a little on the table on this BRRRR

[Blake Edwards]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,000
Cash invested: $11,000

Contributors:
Greg Edwards

Bought for $72k
$11k rehab
All in for $83k
Appraised for $106,000
Refi'd for $79,500
$4400 left on the table
$232/month cash flow

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

Long term passive income made from buy & hold rental properties

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

We found it from a realtor we were working with. We offered asking price and got it under contract

How did you finance this deal?

Traditional bank financing which has been the key for us. Using leverage instead of cash has unlocked many more properties

How did you add value to the deal?

New floors, new paint, light cosmetic updates

What was the outcome?

This one we couldn't pull out all of our closing and down payment costs. The ARV came in a bit less than expected. Lesson learned. We left about $4400 on the table which isn't bad considering we are cash flowing a property for $4400 out of our own pocket.

Lessons learned? Challenges?

We should have negotiated on this one for a bit more of a buffer. We do not like to low ball and waste people's time and the asking price worked for us. We had nothing to lose negotiating a lower price, so we should have gone down that road.