1st BRRRR with Delayed Financing off the MLS

[Robert Shortsleeves]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: ~$47,000
Cash invested: ~$6,000

Contributors:
Alexander Felice, Shelby Osborne, Daniel Kidd

The MLS is not dead!

BRRRR with Delayed Financing
2/1 that I converted into a 3/2
COC: 41%
Equity: ~$24,000

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

The potential to BRRRR this property with little rehab needed. This gem already had hardwood flooring, SS appliances and granite countertops. Winning!

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

I found this deal on the the MLS. After 15-20 offers well below asking, we were able to find a motivated seller. Working with an investor friendly agent was vital. Thanks Dan!

How did you finance this deal?

I purchased the property for ~47k cash. The minimal rehab is complete and I'm now in the process of doing a cash out refi with delayed financing. I could wait for the 6 month seasoning period and increase my ROI but figured the velocity of money is more important at the moment. And...I'm a little impatient :)

How did you add value to the deal?

Converted a 2/1 into a 3/2.

What was the outcome?

I'll be able to pull out most of my cash invested and move on to the next. BRRRRific

Lessons learned? Challenges?

If you haven't heard, it is possible to include your rehab cost on the settlement statement and combine the PP and rehab cost with your delayed financing cash out refi. At closing I thought I was going to turn the addition into a bedroom and move on to the next deal. After closing I decided to add a full bath because I thought about resale down the road. I should of been more decisive and included the entire rehab cost on the settlement statement.

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

Five Pillars Realty Group https://www.fivepillarsrealty....
MC Mortgage Group https://www.macmtg.com/

I learned about delayed financing from Alexander Felice. 
https://www.biggerpockets.com/blog/biggerpockets-podcast-301-incredible-power-long-distance-brrrr-investing-alex-felice