After a ton of mistakes, it still BRRRRs

[Mat Lewczenko]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $40,000

Originally bought for a flip. However, a Property manager suggested a 4th bedroom and shared with us the rent increase which made it a BRRRR. Total gut rehab and had some contractor challenges at the beginning. Added a 4th bedroom and that significantly increased our rents. Went 3 months over schedule, had a contractor ghost us, regroup and go 30% over budget and yet it still cash flows. Able to refi and pull out 100% of my funds to repeat. ARV is $145k right now and rents for $1250-1350/mo.

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

This was a 3 bed 2 full bath with 40% more square footage than other 3/1.5 and 3/2 comparables. Saw the opportunity to add a 4th bedroom and still have a lot of living space.

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

This was on MLS investor owned.

How did you finance this deal?

Used a HELOC/Cash

How did you add value to the deal?

Full gut rehab.

Lessons learned? Challenges?

Bad contractors will double your timeline and cheapest cost most.