First BRRRR completed!

[John Lewis]

So this was my first BRRRR deal and I have to say it is a very powerful strategy. I wasn't able to purchase the home in cash so I went to a local bank who was willing to loan me the money for the purchase with only 10% down. I used a combination of HELOC, credit cards, and cash for the renovation and then was able to refinance into a 30 year mortgage to recoup most of that reno. I could have refinanced for more but cashflow is also very important to me.

Investment Info:

Buy and hold about 45 minutes outside of New Orleans, LA

Purchase price: $56,500
Cash invested: $30,000

Single family home in a town with a lot of industrial/refinery work.  The plan for now is to rent furnished to traveling blue collar workers.

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

cash flow

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

Buddy of mine who is an agent offered it prior to listing on MLS

How did you finance this deal?

20 year loan with 10% down to purchase the home. HELOC used for majority of the renovation and then refinanced into a 30 year fixed rate loan for $80,000 at 5.5%.

How did you add value to the deal?

Full renovation including adding an extra bedroom and bathroom

What was the outcome?

Home appraised for $120k and was able to rent out for a premium due to renovation and renting out furnished to traveling workers.

Lessons learned? Challenges?

The renovation was the hardest part.  I need to have a better relationship with contractors and shorten the timeframe of the project.  

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

Yes! 

[John Lewis]

I had done a few other renovations so I had somewhat of a team in place but it was still a learning experience.  Going forward I really need to put better systems in place but I think it went pretty smooth overall.  Ready for the REPEAT part now!