BRRRR 2: Arctic Tundra

[Erik Stewart]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $74,000
Cash invested: $50,000

This is my 2nd BRRRR deal. I implemented many of the lessons I learned from my 4 flips and other BRRRR deal. Top to bottom Rehab of a 4 bed 1 bath SFR near colleges. Rents for $1350/mo, tenants pay all utilities.

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

BRRRR Strategy = Faster accumulation of cash-flowing properties which = Faster financial freedom!

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

Direct Mail!

How did you finance this deal?

Private Money for purchase and rehab
Commercial loan for long term financing after lease was in place.

How did you add value to the deal?

Fast closing ability for the seller, large rehab to bring the property back to life!

What was the outcome?

I was able to achieve an ARV of 175k with ~125k all in, and a Cash-out Re-fi of 140k loan. BRRRR + extra for the reserve account.

Lessons learned? Challenges?

This project was a lot easier after having gone through it all once before. Challenging parts are staying within budget, finding great tenants, and determining how each property fits into your long term strategy.

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

Yes!