Intended BRRRR ends up being primary residence

[Jason Ray Richardson]

Investment Info:

Single-family residence buy & hold investment in Brookhaven.

Purchase price: $75,000
Cash invested: $125,000

This house was up the street my current home and had been on the market for over a year. It was totally dated and most of the rooms were ate up by termites. I wanted to purchase it as a fix and flip however when I walked my wife through the house I did too good of a sales job on what the house could look like. So she ended up wanting to move in. After a total rehab on flooring throughout the house, rewiring, new air units, repainting the outside.

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

I know the houses in the area having grown up here and could see the potential in the deal.

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

It was listed with a realtor for over a year. I offered less than half what they had it listed it for and they came back with a counter offer which we went with.

How did you finance this deal?

1 year adjustable rate loan with a local bank.

How did you add value to the deal?

I knew the potential value of the house because of it's size and location. Reworked the rooms during rehab to better use the size of the house.

What was the outcome?

The house is worth over 290,000 which left me enough money to cash out some equity and buy some more property (which was part my wife and I's compromise.

Lessons learned? Challenges?

I way under budgeted on this house, fortunately it was such a good deal that I was still ok. Keeping my contractors motivated. I went through several while on this project.