In process BRRR deal

[Ryan Swigart]

Investment Info:

Single-family residence buy & hold investment in South Bend.

Purchase price: $110,000
Cash invested: $40,000

In Process BRRR. This property was an off market deal owned by someone my realtor knew that fit my criteria for a fixer upper in the location I wanted (near Notre Dame). Asking price was 129,000 (high). I bought it for $110,000. Putting 5% down I am going to live in it for a year.
Financing it by money I've saved up and pulling out a HELOC on one of my previous BRRR's.
This is my largest rehab to date. Estimating around $30,000 rehab.
Cash to close- $6,055.77
Earnest Deposit- $2,500
Scope of work:
Currently On
HVAC- Heating Air and duct work $14000
Gutters, Facia, Soffets- 5,000-6,000
To Do
New doors
New windows
New Garage door
New Kitchen
New flooring and refinishing hardwood
Repainting (Indoor and Outdoor)
Remodel Bathrooms
New trim

Haven’t decided my end goal for this property yet. Where it is located it could be used for Air BNB, I could house hack it, or may use it as long term rental and move into another property. FIRST, I need to complete the rehab and will be doing a lot of the work myself.

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

Using the BRRR strategy— was looking for a rehab near Notre Dame

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

It was listed on the market yet. My real estate agent new the owners that had inherited the property and it fit my criteria so I bought it before it was listed. They were asking $129,000, I offered $110,000 and told them that was the best I could do and final offer. They accepted.

How did you finance this deal?

I am living in the property so 5% down out of my pocket. Going to pay for rehab with money I have saved up and take a HELOC out on one of my other properties.

How did you add value to the deal?

Going to do large rehab— details in the deal. Completing a lot of the work myself.

What was the outcome?

Will keep updated as I go. Just started this deal.

Lessons learned? Challenges?

Will update this later.

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

Currently have a good contractor for the HVAC but don’t want to jinx it til they finish.