Accidental BRRRR - Turnkey turned into a BRRRR Deal

[Josh Goldstein]

Investment Info:

Single-family residence buy & hold investment in Raytown.

Purchase price: $70,000
Cash invested: $1,000

1st Investment property! Wound up going turnkey. Its rented for $850/month. And then I turned around, got it appraised for $118k and pulled almost all of my investment out.

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

I had really wanted a BRRRR for my first deal, but after hearing episode 340 with Whitney Hutten I started looking into turnkey, and ultimately it wound up being great BRRRR deal.

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

After networking and trying to find a good turnkey provider one of them sent me a deal that seemed to make sense. The turnkey provider is a property management company that was referred to me. I pulled the trigger.

How did you finance this deal?

Part cash and part HELOC.

How did you add value to the deal?

It was turnkey, so I didn't have to do anything. I did ask for multiple repairs during the inspection period though.

What was the outcome?

After I closed I got it appraised for 118k and then did a cashout refinance to pull out $73,800. After all closing costs and inspection I have about $1000 left in the deal.

Lessons learned? Challenges?

Incentivized the tenant with a gift card to clean up right before appraisal so I could get the maximum amount.

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

Corey Pogue at REIS brought me the deal and Jim Carlson at One Stop Property Management is still the property manager on the property.