First investment with a SFR and BRRRR attempt.

[Daniel J Huss]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $106,500
Cash invested: $30,000

This was an older house that had been on the market for quite a long time so I went with a low offer. The house needed a good bit of work and a complete replacement of the HVAC. I ended up spending about $50k. The rehab included all the HVAC systems (going from a leaky oil furnace to a heat pump and new ducts), insulation, LVP in most of the house, and fairly extensive work in one bathroom. On the refi, I ended up getting about $20k back which was about the amount of my down payment.

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

It sat listed on the MLS for a while. Used a realtor friend of mine as a buyer's agent.

How did you finance this deal?

Typical 30-year Fixed mortgage for the property. Used a HELOC on my primary residence for the down payment and rehab.

How did you add value to the deal?

Some sweat equity and plenty of fixes to the property.

What was the outcome?

I'd say it was fairly successful. I wish I could have gotten some more money out on the refi, but appraisers don't work for me...

Lessons learned? Challenges?

1) Always assume the appraisal is going to come back lower than you want. 2) Be sure to stay on top of your lender to get their part done, especially if they are online. (literally had new stuff coming to us at the closing office).

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

Just agents and attorneys that are local to me.