Successful Metro Detroit BRRRR

[Keyonte Summers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $20,000

This is my most recent BRRRR in the Detroit area. The deal was found leaving one of my other rentals in the area rents for 1075. It's just to show that good deals are still out here. The seller works at a title company, so she still reaches out with leads and add value to my investing career.

I handled this rehab alone but very much appreciated my other BP’ers that came in and bounced ideas with about design and getting maximum value.

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

FSBO for a neighborhood I was familiar with. I knew the ARV was high for the asking price.

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

Pure mistake was leaving one of my rentals doing some maintenance saw the FSBO sign. I pulled over looked at the exterior, called the # in my car asked when I can see it because I'm outside. I saw it the same day contract signed the next.

Asking was 45k but got them down to 35k but could have aimed lower. I sold them on my personality and me being a local investor and being able to close when they wanted. They needed fast cash but didn’t need to move until 3 weeks after closing

How did you finance this deal?

HELOC and 0% business credit cards

How did you add value to the deal?

Renovation- New Bath, Kitchen, flooring, etc. Painted exterior. I manage my own rehabs and usually do 60% of the work if time permits. I enjoy the rehab process and being hand-on in every aspect, expect any drywall work.

What was the outcome?

$40k + spread after repaying HELOC and business credit cards. Receiving 1075 in rent at this home and its not even the highest rental comp.

Lessons learned? Challenges?

Challenges: A ton of deferred maintenance on this project pet city. 3 dogs, 2 cats and all smell when completing the rehab. It also had a bee farm which I was stung from leftover bees.

Lesson Learned: Filter your contractors, I had to fire someone off this project because of poor work and rigged references and pictures because my normal people weren’t available. Pick a design plan and stick with it. I wasted money in the kitchen placing in a tile and looking at it, I didn’t like it so con

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

I had my agent pull comps to make sure the spread was good enough before purchasing.