Another Successful BRRRR in Chicago!

[Martin Neal]

Investment Info: 3 Bedroom 1.5 Bathroom Townhouse on the south side of Chicago

Purchase price: $29,500

Cash Invested: $30,000

Refinance Amount: $72,000

How did you find this deal and how did you negotiate it: This deal was on the MLS/Auction website. I was the highest bidder.

How did you finance the deal:

I used HELOC funds as well as a private investor. This was the first time working with private money and I loved it. We split the cost 50/50.

How did you add value to this deal: we did a complete remodel of the property. We added new cabinets, countertops, tile, refinished the hardwood floors and painted throughout.

What was the outcome: This property was rented out for $1140. We could have gotten more but it took longer than expected to rent and we wanted to be very selective. We initially had a tenant lined up for $1205 but they dropped out at the last minute costing us 6 weeks.

Lessons Learned:

* Great deals can be found on the auction. This auction was nice because we could view and inspect the property prior to bidding which was critical to me purchasing.

* I learned that tenants can change their mind and cost you time and money. I now require earnest money from tenants to hold the property until they move in. If they back out for any reason short of me not performing on the property in some way, then they lose their earnest money.

* There is a huge demand for 3 bedrooms, the applicant pool was plentiful.

[Marilou R.]

Great job @Martin Neal! 

I am currently fixing a house and my numbers are not great. But anyway I am charging it to my education. Looking for my next project before the year ends.