Our business plan is to BRRRR properties and this home met our criteria. It's in a great neighborhood close to our home, has three bedrooms, two bathrooms, a basement and large yard. We knew this home would rent quickly and slightly above the average rate in Topeka.

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

We purchased this property from a great wholesaler, Manny Herron, and have formed a great relationship with him. The home was listed for sale on Facebook Marketplace and I looked at it myself while my business partner was away. I knew it would be a great deal so we negotiated the purchase and closed quickly.

How did you finance this deal?

I have a private lender that provides half of the cash and my business partner covers his half with cash. We are continuing to grow our connections with local investors to continue paying for more properties.

How did you add value to the deal?

The house was vacant for about ten years and had nasty white carpet covering beautiful hardwood floors. We removed all of the carpet and refinished the hardwood floors. We installed luxury vinyl plank flooring in the basement, both bathrooms and the kitchen. All light fixtures were updated, some electrical repairs were made and upgraded the electric panel to 200 amps. A tree had fallen on the roof causing a lot of damage. We had the roof repaired and a new roof and gutters installed.

What was the outcome?

We found a tenant while we were still completing the rehab and they moved in the day we completed, exactly one month after we closed the purchase. We refinanced the home and it appraised for $116,500.00 and our all in cash was $95,192.01!

Lessons learned? Challenges?

We learned we spent too much when we purchased the property and have become much more conservative when we are running our rehab and ARV numbers. Although we have a little bit of cash stuck in the property, we'll make it back fairly quickly with the monthly cash flow.

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

This was an off market purchase but I spent a lot of my own time searching for this property. Our loan officer, Jay Tunnell, at Kaw Valley Bank has done a great job for us so far. He has made the process quiet easy, even with issues caused by COVID-19.