Our First BRRRR???????

[Pamela Morrison]

Investment Info:

Single-family residence buy & hold investment in Flint.

Purchase price: $15,100
Cash invested: $15,100

Bank owned property we thought we never had a chance to get in this market. Bi level single family home, 1200sq ft 3bd 1.5 bath. With a horrible in ground pool with trees growing out of it!

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

We had just offered on a similar rent ready home across the street listed for $53,000. Same house two doors down recently sold for $52,000. We also knew this neighborhood brings average $900 in rents. We knew we could do a fix and rent and cash flow nearly $750/month.

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

I got an alert from Zillow that there was a new listing. Happened to be in a neighborhood we had recently tried to buy a house in. We walked thru that day, did our inspection (hubs is a builder so we do our own) and submitted a full price offer through the listing agent with NO contingencies. It was a bank owned property with many other offers. They came back and asked everyone to submit a highest and best offer by a deadline. We went back at $15,100.

How did you finance this deal?

All cash

How did you add value to the deal?

Currently getting the pool filled in. The house needs a fresh coat of paint on exterior siding. We will updated some electrical and the rest is lipstick. Meaning paint kitchen cabinets, change out countertops, refinish hardwoods upstairs, and install new LVP flooring on lower level (kitchen, dining, living area, bathroom and mud room).

What was the outcome?

We are going to use this property as our BRRRR. All in we will only have $25k invested in a $50,000 home. It will be perfect to BRRRR

Lessons learned? Challenges?

No contingency offers are winners. Do your inspection before you write an offer! We also had an advantage of offering through the listing agent. They fought for our offer and we were not the highest!

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

Yes the listing agent. It was great since it was a bank owned property. They pushed for our offer to be chosen.