My first BRRR in Huntsville Al

[Gorden Lopes]

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $83,300
Cash invested: $17,000

This was my first BRRR and I used all the strategies that BP has suggested.Started up by opening a HELOC on my primary to have 100K of cash at hand. Got this 4Bed/2bath off market property through one of my realtor. The seller got this through probate and wanted to sell this quickly. Mostly bathroom upgrades, floor, kitchen upgraded and upgrading electrical panel. Estimated ARV at around 140K. Started the offer at 75K all cash. Went back and forth for sometime and closed at 83,300.

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

Off market property with cosmetic rehab and great location.

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

Got this deal through one of my realtor and it had a estimated rehab of 17k and I wanted to keep my out of pocket cash within the 1% rule. The house would be rented for 1100 so had to keep my total out of pocket to 110K.
I kept 10K as buffer, so wanted to keep everything within 100K; so started with 75K and

How did you finance this deal?

Did a all cash offer. I used cash from my HELOC account that I opened on my primary residence.

How did you add value to the deal?

By upgrading the bathrooms and kitchen.

What was the outcome?

My contractor rehabbed the property for 17k.Went to the local lender for cash out refinance and it got appraised for 145K! Woo hoo! Got it rented in couple of months for 1100 per month. Took most of my cash out.

Lessons learned? Challenges?

Rehab time went a little longer. I thought the rehab will be done within a month but it took close to 2.5 months.

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

@Jason Grey, you are a rockstar!

Cannot thank him enough for getting me this deal!