BRRRRing FOR THE FIRST TIME

[Whitney Alford]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $20,000

First rental property with the intent on BRRRRing. Considering utilizing Section 8 for this house and a few others in the area due to the local neighborhoods. Home currently is in an area near Down town Baton Rouge for a quick commute to night life and both LSU and SU. Currently, in the first stages of rehab process with potential tenants ready to move in once ready. We are now looking for lenders to partner with for our first refinance. We are both new to this process.

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

Partner and I are native to Baton Rouge. We are beginning our investment business to create and generate long time wealth. Using the BRRRR method, we could exponentially increase real estate investment portfolio and grow our LLC to open doors to a plethora of opportunities.

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

Randomly, my partner met owner at the barber shop.

How did you finance this deal?

Seller's finance

How did you add value to the deal?

Forced appreciation through rehabbing property

What was the outcome?

currently working on project

Lessons learned? Challenges?

Going in, we did not know what to look for as far as with the lay out of the house, the year the house was built, and damages that lie beneath the hideous walls. Since renovating, my partner and I have learned how quickly rehab costs can rise once you gut the house and see what you really are working with. Our original plan was to turn a 2 bed 1 bath single family home into a 3 bed 2 bath. However, the costs in repairs and addition to the house far outweighs the return we would get in ARV.