First BRRR Investment

[David Flores]

Investment Info:

Single-family residence fix & flip investment in Weehawken.

Purchase price: $300,000
Cash invested: $5,000

This is actually going to be a BRRR when all is said and done. Got a very a good deal in one of the highest appreciating counties in the whole country. We plan on living in this unit for 1 year and fixing it up as we go. Right before we move in we will be redoing the floors and painting the walls. There is not much to this besides cosmetic work. Sellers were motivated to sell as they want to move back to Columbia after being in the states for 20 years. They are looking to retire now and move back with family. Can't beat working with motivated sellers!
Anyway, we plan on rehabbing the place and refing in the 400-450 range. We will be taking out capital to increase our available cash on hand and then we plan on renting it out. Excited for this as this will be my first "Fixer-Upper". My ultimate goal is to become a developer so this is really my first small baby step in that direction.

The deal was financed through private money and will be paid back after the rehab is completed with interest.

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

Saw a great opportunity to try out a rehab and refi strategy and pounced on it.

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

This deal was found through a real estate agent I know. He sent me a pocket listing and we negotiated pretty well. The agent told us they are moving to columbia and they have owner the property for a very long time (meaning they would be making a lot of money on the sale). Ended up getting the place very cheap at 300k. Comps are at 375+.

How did you finance this deal?

Through private money and closing costs were on us. I have an attorney plan I pay about 10 dollars a month for and this covers attorney fees (pretty awesome!). If anyone is interested check it out, its called Hyatt Legal Plan.

How did you add value to the deal?

Will be redoing floors, painting, re-doing the kitchen, and adding detail to the unit.