BRRRR in Austin. Cosmetic rehab complete in <45 days!

[Justin Phillip]

Investment Info:

Single-family residence buy & hold investment in Austin.

Purchase price: $170,000
Cash invested: $15,000

BRRRR. Purchased for 170k with hard money. 17k Rehab and completed in 40 days. Rehab included floors, paint, fixtures, bathrooms, countertops, and appliances.

Hard money 1.5 pt and 10.9%.

Appraised for 230k and refinanced to long term financing.

Current payments at $1,500 PITI, and rental income is $1,750.

Current Value should be around 240k.

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

Simple rehab and easy to rent. Multiple outs.

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

MLS deal. Property did not show well because of condition (paint, floors, cosmetics). Great deal and not many similar options in MLS today. Importance of presenting solid offer and assuring seller of closing.

How did you finance this deal?

Hardmoney for quick close.

How did you add value to the deal?

Cosmetic rehab.

What was the outcome?

All in about 80% ARV, which is harder to come by now in Austin. Good outcome with solid rental demand and overall market appreciation.

Lessons learned? Challenges?

Expect rehab to be more than expected. Expect rehab to take longer than planned.

**Anticipate time delay with underwriting and getting refinance complete....especially with freddie/fannie investment loans.

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

Yes! Reach out to me and I'm happy to recommend them.