Speedway BRRRR - 2/1 SFR - Full Rehab

[Seth Wilcock]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $51,250
Cash invested: $23,000

2/1 BRRRR in Speedway, IN.

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

It was my first BRRRR. I have done a couple house hacks in the past as well as a

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

My Realtor in the area was looking at a different property in the area. On his way back from that showing, he saw a sign in the yard for this home and called the seller. We ended up getting under contract and offered to pay cash with a quick close.

How did you finance this deal?

I ended up using a combination of a 401k loan and personal savings.

How did you add value to the deal?

We did a whole rehab on this property. Flooring, plumbing, new roof, added a garage, new counter top in the kitchen, full bathroom rehab including toilet, vanity, tile, redid drywall throughout, added a new cement patio, new cement sidewalk around the home, new drainage & grading.

What was the outcome?

Overall, this wasn't the best BRRRR on paper, especially since we ended up leaving a lot of money tied up in the property that we didn't get back out. We were hoping for an $80K ARV and ended up getting a $70K appraised value once everything was done. That being said, I knew going into it that we would probably leave some money tied up int he deal, and this was my first BRRRR. I was looking for experience and education more than anything. We ended up cash flowing better than expected too.

Lessons learned? Challenges?

I definitely realized that in order to get more cash out, the acquisition price has to be below market value to leave enough room for your rehab budget. At the end of the day, I overpaid for the initial price, but it's going to be a great long-term rental for us.

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

Yes. Mike Ernest with Keller Williams Indy Metro homes. I've done multiple deals with him, and he's amazing. High quality customer service and a knack for helping me find deals.