First BRRR Investment

[Wendy Oliver]

Investment Info:

Other buy & hold investment.

Purchase price: $213,000
Cash invested: $28,000

This was our first BRRR! We bought this for 213k, as a 3 bed, 3 bath townhome near the Broadmoor in Colorado Springs. We renovated all of the bathrooms, kitchen, flooring paint - basically a complete cosmetic remodel. We were also able to add a bedroom and rent the property for $1945 + $25 pet rent. We just completed a cash out refinance with an appraisal of $275k.

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

So we can get our money out and buy another!

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

MLS deal - it had been on and off the market a few times so the seller was motivated.

How did you finance this deal?

conventional mortgage, 20% down

How did you add value to the deal?

complete cosmetic remodel

What was the outcome?

We raised the value by 62k after only putting 28k in to it and were able to get most of our money out.

Lessons learned? Challenges?

I would not buy with a traditional conventional mortgage - I have since found a credit union that will lend at a slightly higher interest rate with no closing costs.