Sweet Little South Omaha BRRRR Deal

[Owen Dashner]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,750
Cash invested: $5,500

This was a BRRRR deal which we bought on a line of credit, put $5,000 into it by painting kitchen cabinets and walls, replacing a countertop, adding 2 closets in bedrooms, and replacing the stove. We rented the house for $995/month. We then went to a different lender and completed a cash out refinance. This lender allowed 85% LTV at a 20 year am at 5%. The property appraised at $100K, so we were able to take out $10K more ($85K) than we had in it tax free, and the property still cashflows.

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

No money out of pocket, property is on a nice street, professionally managed and still cashflows $100/month. We have money in reserves as well after the refi to pay for any unexpected expenses.

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

This was an MLS deal, we made a cash offer slightly below asking price with a quick close.

How did you finance this deal?

This was bought using a LOC.

How did you add value to the deal?

We replaced a stove, added 2 closets to the bedrooms, painted the cabinets and kitchen walls, and replaced a countertop.

What was the outcome?

We scored an undervalued, nice little cashflowing property with none of our own money and we did not have to do much to get everything done. We refinanced and got our LOC paid off, plus extra funds and it still cashflows.

Lessons learned? Challenges?

No challenges, this was one of the easiest projects ever.

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

We worked with Angie Thiel from Berkshire in Omaha to submit the offer and negotiate the deal (highly recommend her). We used Stephen Ward with Exceptional Properties Group to manage the rehab, place the tenant and continue managing it. Also highly recommend Stephen.