First Flip that turned into my first BRRR

[Nevin Ashley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35
Cash invested: $20

I BRRRd this deal. Bought for 35, rehab cost 20. Got it rented out then refinanced a year later and was able to pull all cash out and put it into the next deal.

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

I really wanted to add to my portflio, and BRRRing it was just one of my exit strategy. In the end it made the most since, because it was completely redone and loved the area.

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

It was my first deal I negotiated all myself. Found it on Facebook of all places. Listed for 49,900 and place was in terrible shape. I went back and offered 35 thinking there was no way. Sellers accepted offer, and away we went.

How did you finance this deal?

This is unique. I found private investor (my grandpa). He had money just mature in a CD and it was only getting maybe 1% if he reinvested. So I approached him, and offered 6% Hard money. We came to terms at 4% (yes, he tried to get less). I still use his money today for projects and just pay him interest. He doesn't want it paid off, cause I'm helping him and now I have a little extra to use if need.

How did you add value to the deal?

We completely remodeled the house. It is a very small 2/1 and we opened it up. (I believe we kept a handful of 2X4s that were damaged by termites.

What was the outcome?

The project took longer than it should. Contractor problems, but in the end everything turned out great.

Lessons learned? Challenges?

Don't be afraid to make absurd offer if that's what the numbers say. Also, always have a list of contractors to rely on.

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

Kristana Rhodes with the Michael Reeder Team