My First BRRRRR-bbbby

[Joseph Sanchez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $22,000

This SFH has 1,362 Sqft of living space, currently 2 bdrms, 1 bath. Converting to duplex 2/1 and 1/1. Monthly Income: $1650.00 ($1100 for 2bdrms/ $550.00 1/1). Monthly Expenses: $1,437.00, Total Cash Needed: 72k, Cash on Cash ROI 15.4%/Infinity. ARV on this property will be 132K. Total profit if sold: $47,134. Paid all cash. See my BRRRR report on my feed.

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

The property is in a area that is experiencing high demand with a 500 acre planned Information Technology HUB being built less than 15 minutes away. This area is going to explode in the next 12-24 months. Google NEO City, Kissimmee, FL to see for yourself.

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

I have setup daily MLS searches for properties in this particular area and from day one I was on it. There are a few others that I am looking at as well.

How did you finance this deal?

All cash. No Financing.

How did you add value to the deal?

First by purchasing it under value, secondly by force appreciation converting from SFH to Duplex.

What was the outcome?

Still working on the rehab, however, things are p;rogressing very well.

Lessons learned? Challenges?

Research, patience's, and diligence. I had to call the listing agent everyday until I broke her down. I promised her the listing when I am ready to sell. I also told her that in the next six months I would purchasing one property every month and I wanted to work exclusively with her. Lastly, I explained the how this would benefit the buyer since the house was in such bad condition and no bank would probably finance the a mortgage.

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

Yes. I am a Realtor, however, I had to work with the listing agent. I could have received a buyer commission if I pushed it, but I let it go.