For my 8th BRRRR I bought a house that had a fire in it!

[Alexander Felice]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000

Cash invested: $18,000

My realtor sent me this house and said the tenant caused a kitchen fire in it. They still hadn't moved out at the time! I scooped it up for ~$50,000 and put $18,000 into it. It looked WAY worse than it was and my contractor gave me a deal considering I've done 8 of these in the last ~3 years and I send him probably 4 clients per month.

I have still not seen the house, this entire deal was done from ~2600 miles away. Long distance BRRRR is so EASY

I don't usually share my deals on BP but this one came out so well I felt compelled ;)

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

It's ugly so I knew a lot of people would pass on it for that reason alone. These are the types of deals I love best and this one rewarded me handsomely for not being afraid.

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

Realtor was the property manager for it and when it went south I was the first person she called

How did you finance this deal?

Paid cash for the close and the rehab, used delayed finance to get 100% of my cash out as soon as a tenant was placed.

How did you add value to the deal?

Everything cosmetic needed to be replaced. The roof and HVAC were fine, despite the way it looks, this was simple lipstick rehab.

What was the outcome?

House looks fantastic, the tenant is happy, and it appraised for $15,000 more than I had anticipated.

Lessons learned? Challenges?

This is far from my first one so it was fairly routine.

The biggest lesson is committing to creating a great team over the LONG TERM. I got this deal because the people who knew about it knew me and they knew I would close, no one else even got a chance at it. It's important to invest in human capital!

Buy difficult deals. The low hanging fruit deals with light rehab and low margins are for the weak ;)

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

@Daniella Osornia
@Rodrick Jackson
@Patrick Stoy

AFTERS 

Thanks for looking, very happy with this one!