Completed BRRRR! And a good one!

[Derek Tellier]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $53,000

Full BRRRR project from beginning to end and my 1st deal!
Went probably too well for my 1st deal

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

Cash Flow, Equity and long term appreciation.

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

Listed on MLS at $95,500
Jumped on it day one offering $90,000 with just 12 day inspection contingency.
Offer accepted due to fewest contingencies.
During inspection found multiple additional issues and negotiated price down to $75K

How did you finance this deal?

Private Money for purchase and original Rehab Budget of $35K

How did you add value to the deal?

Extensive rehab of home and property.
It was practically a junk yard.

What was the outcome?

Went $23K over budget on rehab!
Refinanced after 6 months with $190K Appraisal.
Pulled 75% LTV out leaving me with about $5K in the deal
Renting for $1800/month with cash flow of about $350 after accounting for about 30% in Expenses
I'm self managing and both Maint and Cap ex should be minimal over next couple of years due to extent of rehab.

Lessons learned? Challenges?

Don't be afraid to renegotiate purchase price when you find issues during due diligence. The numbers have to make sense and sellers will often be willing to work with you rather than start over with someone else who will likely just find the same issues.

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

Myself as buyers agent
Maryville Title for closing - Highly recommend
Pinnacle Bank for refinance