Rehabbed everything but the Sewer line- Buy & Hold

[Chris Lawrence]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,500

Cash invested: $21,000

Purchased this rental property through a wholesaler. I did the BRRRR strategy. Currently have a tenant in the property with a positive monthly cash flow of $240 after factoring for CapEx, maintenance, and vacancy.

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

Looking to continue to grow my rental property portfolio.

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

I found this deal while looking at a different foreclosure property in Rochester and made a connection with a contractor down the road that happened to wholesale deals. This property that I bought from the wholesaler was ironically 2 houses down from another rental that I own.

How did you finance this deal?

private money then did a cash out refinance

How did you add value to the deal?

Entire interior rehab to force appreciation.

What was the outcome?

Positive cash flowing property that is all updated inside.

Lessons learned? Challenges?

Rehabbed the entire house and a week into having a tenant move in having a broken/damaged sewer line that is currently getting repaired. This obviously isn't ideal, but its a positive cash flowing property and still a good deal even though I'm having to more CapEx expenses that I didn't forecast for.