3 Bedroom Colonial, City of Rochester

[Carini Rochester]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $22,500
Cash invested: $10,000

3 Bedroom Two story, city house, urban area.

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

Low cost way to get into 2nd property.

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

Foreclosure property on Auction.com. High bidder.

How did you finance this deal?

Pulled money out of my primary residence with a home equity loan.

How did you add value to the deal?

Drywall, paint, kitchen cabinets, new floors.

What was the outcome?

BRRRR failed as the after repair appraised value was lower than I expected. Rent covers all monthly expenses and provides some cash flow.

Lessons learned? Challenges?

Banks appraise quite low in these depressed areas of Rochester. Makes accomplishing a BRRRR almost impossible.