BRRRR - 2 Bedroom house with minor updates

[Tim Andy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $56,000
Cash invested: $4,630

Single family home Bought and rehabbed in the South Hills of Pittsburgh.
- 2 Bed
- 1 Bath
- Washer/Dryer
- Dishwasher
- Central AC

This was bought and needed to be brought up to date I added new carpet, paint, light and bathroom fixtures.

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

After my first deal which was bought conventionally I wanted a way to maximize my remaining capital so I turned to BRRRR.

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

This deal was found on the MLS. We dealt with the executor of the estate while negotiating. They were asking 75k and we agreed at 56k. The executor told me they decided to sell to us at that cost because we were the only offer that treated them respectfully. During negotiations we explained to the buyer we were buying to rehab and rent. We outlined the amount of work required and our expected rent to show why our offer was substantially lower than asking.

How did you finance this deal?

I bought and rehabbed this deal cash and am currently looking to do a cash-out refinance on this deal and one other I still own outright.

How did you add value to the deal?

We agreed to help out the estate by removing all remaining furniture and goods, we found a local agency that we could donate a left over stairlift to.

After the purchase we updated all light fixtures, added carpet, painted everything and refreshed the kitchen and bathroom.

What was the outcome?

We were able to get this home rented for $975/month a month after the rehab was complete. We bought in an appreciating neighborhood around Pittsburgh, and I expect this to refinance in the 90s.

[Donald Cherry]

Congrats @Tim Andy.  Can you talk a little more about the financing, $4630 cash invested, how did you finance the balance of the purchase price?  What was the total amount investing in rehabbing?  

Thanks,

Don

Nice, great job Tim, Go Steelers!