Single Family buy and hold BRRRR in Cincinnati area

[Randy Dargan]

Investment Info:

Single-family residence buy & hold investment in Dayton.

Purchase price: $42,000
Cash invested: $16,000

Contributors:
Kyle Warmouth

Purchased in march for 42,000 and invested 16,000 in rehab with a few major updates to the kitchen and the loft (2nd bedroom). We took down half a wall to make a breakfast bar and removed the dining room window to add a door to the patio. The loft was not insulated and falling inwards. We insulated and then lofted the ceiling to make it code for ceiling height to be a second bedroom. Other updates include quartz counters, refinishing the cabinets, updating the bathroom vanity, and adding all SS appliances as well as a brand new hot water heater.

This house is in Dayton KY in a suburb of Cincinnati. On to the next one...

Current rents are 1200/mo for a 2-year deal

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

We saw the ARV potential in the area and actually got the ARV appraisal back higher than we expected.

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

Zillow. We used an agent to represent us

How did you finance this deal?

Cash purchase and rehab

How did you add value to the deal?

Complete rehab to kitchen, bathroom, and updated the "loft" to second bedroom that wasnt previously in code

What was the outcome?

Rented after 4 months of rehab and a cashout refi that will set us up nicely to scale quicker than previously expected.

Lessons learned? Challenges?

Doing the rehab myself was alot of time and energy. Obviously learned a lot during this phase. As far as BRRRR, we have learned ARV, appraisal, and cash out refi processes even more so.

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

Equitable Mortgage Coproration was our cashout refi lender. Great company. Sparen Realty out of Covington KY was our buyer brokerage.