Millcreek buy and hold BRRRR

[Cherie Orellana]

Investment Info:

Single-family residence buy & hold investment in Kearns.

Purchase price: $270,000
Cash invested: $40,000

Rambler with a 4 car garage with a large room above garage. Gutted the main home and updated property. Added a 2 bed 1 bath mother in law above the garage. Main home 5 bed 2 bath rents for $2200 including utilities, 2 bed 1 bath above garage $1,400 including utilities. 3,000 sq ft property ARV $385,000

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

Expanding portfolio. Home had a large room above garage that had great potential to convert to a MIL

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

MLS
The great deals go fast. I get updates on the market hourly and was quick to make an offer and had it under contract within hours of being listed.

How did you finance this deal?

Conventional loan. Used a HELOC on my primary residence for the rehab.

How did you add value to the deal?

Added a second living space and complete remodel.

What was the outcome?

Over $1,000 cashflow a month as a rental and about $70,000 equity

Lessons learned? Challenges?

My Husband and I personally did a lot of the work on weekends. It took roughly 6 months to complete. I feel like we should have hired out more of the work. Time is money. I also learned the lowest estimate for contractors is not always the best value. You often get what you pay for. Not just quality of work but also reliability, professionalism, and sticking to schedule.

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

I have 2 amazing lenders that I have worked with for many years. No one has even come close to their speed, creative ideas, connections and value that they add to every purchase personally and for my clients.