Perfect BRRRR this time!

[Erich Henson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $40,000

Nobody wanted this property! I picked it up for $10,000, put $40,000 into it in repairs, and it appraised for $75,000. Took out mortgage for $60,000. That's a $10,000 cash-out BRRRR that cashflows $500/mo profit! Picture-perfect deal this time!

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

Low price, great cashflow potential.

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

On the MLS.

How did you finance this deal?

Used credit cards to pay cash and then refinanced with a mortgage after rehab completed.

How did you add value to the deal?

Painted exterior and interior, new flooring, new kitchen countertops, stainless steel appliances, new bathtub and surround, new light fixtures, and repairs as needed.

What was the outcome?

$10,000 cash-out and $500/mo positive cashflow.

Lessons learned? Challenges?

You can find diamonds in the MLS!