Just closed on my new BRRRR Project

[Micah Watson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,500
Cash invested: $110,000

Just landed this one! The cash invested is an estimate, as I am just now planning the rehab. I will gain possession 4/10/19 and I plan to have it rented by June 1st. This one will be a BRRRR project so the cash invested ultimately should be pretty close to $0. The instant equity is the main appeal, as I am confident I could immediately sell with an ARV of $160k. The cash flow will keep things moving, but it will probably be just under a 1.5% deal.

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

Having gotten my feet wet on my first deal, I've come to realize the repeatability of the BRRRR method. I want to accumulate as many of these with 20% or more equity ASAP. :)

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

My good friend was sent the deal by an agent and I was able to get an inspector in there to see the place within 24hrs of the listing going up, make an offer the same day with no contingencies, and closed 10 days later.

How did you finance this deal?

I used cash that I pulled from an old promissory note and I am funding the rehab with two HELOCS on my two other houses.

How did you add value to the deal?

This was a diamond in the rough. Worst house on a very nice quiet street. I will be sinking 30-50k into it and building 30-50k of equity above all of my cash invested.

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

My agent is Mandy Green from Greenville, MI Coldwell Banker. She is an investor herself that is no longer hunting for deals, which makes her an incredibly valuable and unbiased source of insight.