First BRRRR and hold

[Caleb Korzenowski]

Investment Info:

Single-family residence buy & hold investment in Duluth.

Purchase price: $56,000

Cash invested: $25,000

REO purchased with our HELOC and rehabbed personally with a friend along with a licensed plumber. All new PVC drains and PEX supply lines, hot water heater. Complete bathroom remodel down to the studs and joists. New flooring and paint throughout. Moved laundry to main level. Kitchen updated. New garage door opener. 3 new windows and roof repaired.

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

Property is in an area of growing rental interest and price was right. We felt confident that we could freshen it up and capture higher rent.

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

MLS listed REO. We started substantially lower than asking price and got in a bidding war. We ended up paying more than asking but still got a great deal.

How did you finance this deal?

Our HELOC and credit cards for rehab

How did you add value to the deal?

Heavy sweat equity.

What was the outcome?

Our tenants signed a 2 year lease and just moved in. Once we completely finish the rehab, we will get an appraisal and cash out refi. Any private lenders interested?!

Lessons learned? Challenges?

The rehab was very challenging and we learned how to push through obstacles and problem solve on the fly.

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

Michael Hoffman is our real estate agent in the Duluth area. He is an investor and quite helpful