2nd BRRRR is complete!

[Joe Roberts]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $101,000
Cash invested: $45,000

3/2 1080sqft brick ranch right outside Wilmington, NC. Purchased for $101k, put $45k in repairs, and just appraised at $199k! Took out a commercial 20yr amortized loan at 3.75% for $140k. Tenant signed agreement and moved in today for $1425/month. Total time from purchase to tenant was 14 weeks. Cash flow will be $250/month

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

I wanted something in the Wilmington market that would be a good BRRRR deal but would also be easy to sell if I needed an out.

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

Found it on Facebook marketplace two days before Christmas. Drove down and walked it on Christmas Eve and put an offer in the day after Christmas. Wholesaler was asking 105k, I offered 100k and we settled at 101k.

How did you finance this deal?

Paid cash

How did you add value to the deal?

Added some new floor joists and concrete footers in the crawlspace, replaced all subflooring, added LVP throughout home, opened up two walls, new paint throughout, new everything in kitchen including granite countertops, converted half bath into a full bath by adding a shower, major landscaping/tree cleanup.

Lessons learned? Challenges?

Always get multiple quotes from contractors. If you want a deal show you are serious and jump at opportunity (e.g. seeing a house on Christmas Eve). Hold out for a top-notch tenant, even if you need to drop your rent a bit. Doing more than the bare minimum to get a house ready to rent often leads to much better appraisals, better rents, better tenants and a better exit strategy if you need it.

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

Donald Walton closing Attorney in Jacksonville, NC is the best! DM me for a fantastic contractor if you are in the Wilmington, NC area.