BRRRR Deal - Edmond, OK

[Chase Gibson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $12,000

I bought this single family home 4/30/2019 and unfortunately didn't begin the renovations until 6/1/2019. The rehab was completed in mid July and I was able to get tenants in place 8/1/2019. The home is rented for $1,050 and my monthly principal, interest, and taxes will be around $700. Monthly cash flow of $350/month, obviously a portion of that will be used for repairs, maintenance, and capex. Not a homerun by any means but it it a solid rental now and my first fully executed BRRRR deal.

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

Wholesaler. Multiple offers, but mine was the only "cash" offer so I got it.

How did you finance this deal?

I purchased the property with funds from a private lender and was able to get the property appraised for $117,000 after the rehab was finished. My lender then let me refinance at 75% of that ($87,300) at 5.25% fixed for 30 years.

How did you add value to the deal?

Full interior rehab.

What was the outcome?

Rented the property for $1,050.

Lessons learned? Challenges?

Don't put off things you know you need to get done related to the rehab. Time is money & worry.