Hope Mills BRRR Results

[Steven N.]

Investment Info:

Single-family residence other investment in Hope Mills.

Purchase price: $44,000
Cash invested: $74,000

Contributors:
Bryant Tumbelekis

Third BRRR deal completed in the Fayetteville/Hope Mills market.
$74k investment (purchase price, plus repairs and holding costs, etc), 12 week demo/repairs.
$93K-$115K ARV range based on comps
$950/mo projected rent.

The % cash on cash returns would be infinite with $100K appraisal.

Unfortunately the appraisal came in a bit low at $82k. No idea why but appraisers are getting tougher...however we have the house rented for $950/mo, and the cash-on-cash returns are still over 20%.

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

Potential for strong returns using the BRRR model. The house was in bad shape when we got it and needed major repairs. Replaced the HVAC & roof, black mold removal, and cosmetics.

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

On the MLS through agent.

How did you finance this deal?

Cash

How did you add value to the deal?

Repairs and hardwood floor refinishing, kitchen remodel.

What was the outcome?

Created some equity (not as much as planned), but still looks like it will be a strong rental with low maintanence

Lessons learned? Challenges?

Another reminder not to trust or bank on the appraisal coming in where you think it will, the appraisers have continued to use poor comparables.

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

Bryant Tumblekis is the third agent I've used, and the best one... He knows what he is talking about and easy to reach.