Second BRRRR in 6 months (Massachusetts condo)

[Greg K.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $185,660
Cash invested: $10,000

Condo BRRRR. Purchased from HUD. $20k to rehab with $10k for new gas furnace, AC, and plumbing repairs. Rest cosmetic paint, flooring, appliances, etc. Rented for $1900 within a month of purchase. Appraised for $253k. Cash our refi with local bank who is a portfolio lender within 3 months of purchase. Used HELOC on a primary residence and another investment property to fund the deal. Next time I'll look for private money to help finance the purchase.

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

Hit the 1% rule and minimal rehab needed for the BRRRR

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

HUD home auction

How did you finance this deal?

HELOC on personal residence and HELOC on an investment property. Chase Sapphire Reserve for the rehab costs.

How did you add value to the deal?

New appliances, new paint, new flooring, upgraded furnace and added AC.

What was the outcome?

Rented it out and cash out refined most of my money. After closing costs I have $10k cash invested on a property that appraised for $253k. Monthly cash flow is $300/month and principal paydown is another $300/month.

Lessons learned? Challenges?

I sent 6 photos to a guy in Pakistan on Fiverr who digitally staged them for $25. I had the place listed for rent before the rehab was even complete and it rented in a couple of weeks.

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

I have a brokerage so I took care of the purchase and rental. I worked with two great attorneys and a phenomenal local bank. All in Worcester County, Massachusetts.