Turnkey in Plainfield, IN that turned into partial BRRRR

[Scott Passman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $107,500
Cash invested: $27,000 + $12,000 renovations

2 bed 1.5 bath single-family home.

What was the outcome?

I bought this property from a turnkey provider in Plainfield, IN back in March of 2019 for 107k with 20% down payment. I had my first vacancy in December and used that time to renovate the property by replacing all the flooring, converting the den to a 3rd bedroom, and some other cosmetic and minor structural repairs. The total renovation cost was $12,000. I just had the appraisal come back this week for 152k and I am in the process of refinancing the home to pull out the money for the cost of renovations + 5k while leaving 30% equity in the property to preserve cash flow and not over leverage myself. While I had planned all along to add the third bedroom at some point, I ended up doing so much quicker than expected but very pleased to have increased the appraised value by $45,000 in just under a year for what turned out to be a somewhat unplanned BRRRR of a turnkey property. It was a great moment when we got the numbers back for the appraisal because it was the first time I saw an expression on my wife's face of genuinely believing that this real estate stuff can really work.