South West GA BRRRR 1st one

[Brian Thurmond]

Investment Info:

Single-family residence buy & hold investment in Ochlocknee.

Purchase price: $41,900
Cash invested: $72,798

Asking price was $45,955, and I purchased for 41,900, closed with 42K. 3/2, 1859 sqft with 2 car garage.
Update Apr 15, 2020, new metal roof and flooring installed! 23,895 in repair cost for rehab with 7 months to complete. Currently rented at 1250/month. The appraisal initially came in at 135,000 but was downgraded to 124,000. We have financed 75% of the ARV. 93,000 is what we were able to secure. After paying ourselves back the investment of all in at 72,798 we are going to make 24,208 on top. 1st BRRRR. We did OK.

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

This venture has been a long time coming. I never had the tools until I listen to podcasts on BP and I read David Green's BRRRR strategy.

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

I found this deal on Realtor.com and it sat for a long time. I did very little negotiation. The original price was 45K. We only talked it down to 41,900.

How did you finance this deal?

I borrowed money from myself to purchase and I used an interest-free credit card for rehab.

How did you add value to the deal?

The value was added by adding a metal roof and lament waterproof flooring. There were cosmetics done, and some repairs to the subfloor, the roof, etc, that scared lots of folks away, but the house had clear value.

What was the outcome?

The outcome was we got every cent my wife and I invested, and we made a few thousand over, as well as fixed up a nice house to improve the value in a nice neighborhood.

Lessons learned? Challenges?

I learned way too many lessons to list, but my biggest lessons were to follow the lessons laid out in David Green's book. Stray from that valuable insight at your own peril.

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

I cannot recommend a single professional in this deal. Maybe next time.