Long-Term Hold/BRRRR in Indy

[Paul Shannon]

Investment Info:

Single-family residence buy & hold investment in Mooresville.

Purchase price: $55,000
Cash invested: $85,000

Purchased through online auction for $55K. ~$30K rehab cost for all-in $85K. ARV of $130K, rented for $1,200 a month through April of 2020.

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

This deal was purchased through an online auction.

How did you finance this deal?

Paid cash through a HELOC. Will eventually refinance through a portfolio lender with other properties.

How did you add value to the deal?

Total rehab.

Lessons learned? Challenges?

This was rehab was a great lesson in managing contractors. Ultimately, buying right made this a great investment to add to my portfolio. I went over on my budget by about $5,000 due mostly to mismanagement of labor and being taken advantage of to some degree. My next deal spells out specific expectations as to project duration/scope of work, payment schedule, and deadlines. I was too lenient with my contractor on this deal and it cost me!