Primary residence BRRRR: buy and hold

[Nicole Frey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $800,000
Cash invested: $200,000

Primary residence buy and hold. We purchased in 2019 in an amazing neighborhood with incredible schools. Knew we wanted to rehab the property but didn't realize it would cost us $250K. Did the Kitchen, laundry room, and all four bathrooms, as well as doubled the size of the master closet. GORGEOUS. We are refinancing this weekend and plan to rent out when we move in two years.

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

Not sure it was a deal, but we needed a residence in the right school zone that was ideal for raising our family.

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

Zillow.

How did you finance this deal?

Did a 1031 exchange, and a conventional on the balance.

How did you add value to the deal?

Rehab. Tons of value added.

What was the outcome?

To be determined. I feel we will be able to cashflow $500 off this refi once we rent.

Lessons learned? Challenges?

BIG HOUSE. Probably too big for us at this stage but we will certainly grow into it.