Our first BRRRR property

[Richard Locklair]

Investment Info:

Single-family residence buy & hold investment in Decatur.

Purchase price: $50,651
Cash invested: $40,000

Single Family 4 Bed 2.5 Bath, 2500 SF Single Family

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

Decatur is a secondary market to Huntsville AL. Huntsville is predicted to surpass Birmingham as the largest city in Alabama by 2024.

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

House was foreclosed and sat vacant for 7 years. We purchased on the courthouse steps.

How did you finance this deal?

Purchased with HELOC, used cash to renovate, refinanced with a 30 year loan.

How did you add value to the deal?

updated everything

What was the outcome?

All in for $90K, Appraised at $125K, Refinanced for $80K Rents for $900/month

Lessons learned? Challenges?

BRRRR is great!

[Richard Locklair]

@Scott Slocum That's right.  We had enough money for the next deal, so we wanted to keep our cash flow positive.  Our lender also said that we should keep our debt to income ratio strong so we could keep financing more properties.