Single family BRRRR in Roseville, MI

[Kyle Shankin]

Investment Info:

Single-family residence buy & hold investment in Roseville.

Purchase price: $42,000
Cash invested: $12,000

Found this 2bd,1bath 700sqft house via a snail-mail marketing campaign, the (at the time) owners are in their 50's, were renting out the house and were tired of taking care of it. We agreed on a purchase price of 42k and I put 12k into the rehab; the house was already in pretty good condition.

How did you add value to the deal?

When all was said and done, our $12k got us:

New windows throughout
Interior and exterior painting for the house and exterior painting on the garage
A small amount of roofing - The house's roof was only a year old, but the cover for the back porch never got redone for some reason
Gutter guards along the whole house
New floors throughout
New kitchen appliances
New bathtub enclosure (including moisture-resistant drywall)
Some light electrical work (new lights, flipping out receptacles, etc)

What was the outcome?

At the time of writing this post, the house is on the market for rent and has been getting a lot of views and saves. I'll be touching base with our property manager at the end of the week to check the status.

Lessons learned? Challenges?

A still-in-progress challenge is that we want to refinance this house, however, it has another 3 months of seasoning before we can do so. At the same time, we don't want the house sitting vacant, so finding a tenant who will keep the house in good condition is crucial.

[Kyle Shankin]

@Lynn Milos thanks for asking! Yes, the house rented shortly after my post for $825/month. That tenant stayed there for 2 years and then moved on. The house was only on the market for a couple of weeks before we found another tenant whose currently renting at $875/month; they're going to renew for another year in about a month. We refinanced the house as soon as we could and it appraised for $86k, so we made about $6k. We're cashflowing about $250/month if my memory serves me correctly.