Brrrr project Lancaster

[Nicole Dechow]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $92,000
Cash invested: $58,000

Single family home 3 bed 1 bath in nice area in the city. We added a half bath and made an open floor plan.

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

It was a good brrrr project, we really liked the location especially.

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

We found it on Craigslist and offered a cash offer, they had it listed for 100k and someone offered that but they were using a mortgage and our offer was cash.

How did you finance this deal?

Private Money Lender.

How did you add value to the deal?

Added a half bath, forced air hvac, open floor plan.

What was the outcome?

It appraised for $175,000 and rents for $1400 with a high quality tenant. We ended up with about $10,000 in the deal.

Lessons learned? Challenges?

We subcontracted the whole project. So we had to learn about permits. We learned picking someone cheaper ends up being more expensive because they quit or don’t do a great job. We learned how long it takes to do everything by yourself. We did learn exactly what it takes to renovate the type of homes we invest in.

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

Lebanon Federal Credit Union has been great to work with so far, the refinance is next week.