Property was a Foreclosure in a up and coming part of town off of Main St. Given the purchase price and rehab cost this lined up perfectly for my next BRRRR.

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

We found this deal on the MLS.
We initially put in an offer $10k under asking at $98,000.00 with 10% EMD. They came back and said they had multiple offer and wanted Best and final. I knew the property needed work and that we would hopefully be able to get a discount after inspection so we went ahead and offered $135k with $13,500 EMD so $26k over asking. After inspection we presented a list of items and cost from contractor, we were able to get the $26k off and close for $109k. Thanks Covid-19

How did you finance this deal?

We financed the Deal with funds from a Cash out refi from BRRRR #2 - 15% Down FHA 30 Year Loan 4%

How did you add value to the deal?

Kitchen Rehab, Replacing Single Pane wood frame windows with new Vinyl Windows, Vinyl plank flooring throughout main level, Refinished original hardwood floors throughout second level, Stainless Steel Appliances, Re-glazing Tile and Tub in bathroom and re-decking front and back porches. Total Rehab cost of $13,000.00

What was the outcome?

We had originally budgeted $23k for the rehab and we will come in at $13k. Thought whole house needed Knob and Tube replacement, but only second level needed to be updated. Had $6k budgeted and ended up costing $1700. Thought we would need to replace old Radiant gas grate heater with Mini split system, budget was $7k, spent $140 For HVAC tech maintenance and new Thermostat. Because of this saving we spent a little more on other items and property is rented for $1500/month and ARV is $180-$190k

Lessons learned? Challenges?

I learned that if you find a good deal and the numbers make sense, do whatever you can to lock it up. I also learned that it pays to be conservative with your rehab cost and budget for the worst. This really came into play when we did not have to spend as much as we planned and makes this deal even better! I also learn to hire a painter, this has been the first property we have really been hands off on and has opened my eyes to how much more we can accomplish by hiring out work.

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

Jamie Lenes SWBC Mortgage - - He is the Best, very knowledgeable and always available to answer questions.
Joe Bird - Remax Advantage Realty - - Been working with Joe for 7 years and can only say great thing about him.