Finished BRRRR (#2)

[Daniel Kramer]

Investment Info:

Single-family residence buy & hold investment in Perrysburg.

Purchase price: $81,000

SFR in Perrysburg, OH
-Purchased: 81k
-Renovated: 55k
-Appraised: 180k
-Cashed-Out: 135k (75% LTV)
-Rental Rate: $1,495

Purchased this as a foreclosure at a courthouse auction. We obtained title on 2/20/2020. Renovation was about 6 months & 55k, which included a new furnace, all new windows, flooring, kitchen, two bathrooms, tree removal and landscaping. This was our "furloughed during COVID" project, so we did a lot ourselves.

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

The neighborhood is very high demand and we got a great purchase price. I liked the multiple exit strategies of a single family residence.

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

Foreclosure - courthouse auction.

How did you finance this deal?

Private lender for most of the purchase price, HELOC on my primary residence for the renovation & kept cash reserves on hand for going over budget.

How did you add value to the deal?

New furnace, windows, flooring, modified the floorplan for a more open kitchen and a master suite. Full kitchen & two bathrooms. Added a shower to make it two full bathrooms.

What was the outcome?

Refinanced 135k (75% LTV, 180k appraisal). Private lender and HELOC will get all paid back, left a few thousand in the deal after closing & holding costs. Tenants in place @ $1,495.