1st BRRRR Strategy That Started By Accident

[Laith Faouri]

Investment Info:

Single-family residence buy & hold investment in Coolbaugh Township.

Purchase price: $55,000
Cash invested: $20,000

4 bedrooms, 2 baths, fireplace in living room and master bedroom, french doors in master bedroom to outside. Spa tub and bidet in Master Bath. Two bedrooms upstairs share a bath. A winter view of the Lake from south side and dining room big window. This home is on a flag lot which means the house is set back. It is set back and private. Stainless appliances and plenty of cabinet space and large closets. Has great floors. A screened-in back porch for your 3 season enjoyment.

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

It was an accident. I was helping out a friend from work who was being evicted with his family and when I did it all went sideways for me.

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

Found the deal on craigslist and negotiated with the seller.

How did you finance this deal?

Seller Finance for 5 years payoff.

How did you add value to the deal?

Renovated it.

What was the outcome?

Doubled the value

Lessons learned? Challenges?

Don't rent to family or friends without a professional property manager being in the middle. I was helping a friend from work who was being evicted with his family. He stopped paying me rent within the first two months. He kept giving me every excuse in the book and I believed him. I wanted to give him the benefit of the doubt. A year went by without me collecting rent and me paying all of the mortgage, taxes and community fees until I had enough it was putting serious strain on my own family...