My First BRRRR Investment

[Nick Seginowich]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $20,100
Cash invested: $1

Contributors:
Aaron Nelson

Property breakdown:
3,2, 1144 sq ft, built in 1982

Financial breakdown:

Purchase price: $20,100
Renovation: $29,214.72
All in: $49,314.72
ARV: $105,000 - $110,000

Rent: $1075
Expenses: $755
Cashflow: $320

Expense breakdown, Pre-refi:

Vacancy: $86, Repairs: $53.75, CapEX $53.75, Insurance $71, Interest $346.67, Taxes $144.17

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

I was able to create a huge amount of equity and cashflow with $0 of my own money out of pocket.

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

I got this lead from direct mail. I went to the property as soon as they called and was able to lock it up after an hour and a half of building rapport. I focused solely on the sellers and their situation for this time and barely even looked at the house because I knew these people and their situation is what's important, not the property itself. I made my offer at $20k, but I said I would add an extra $100 for one of her beautiful pictures and they loved it. I was happy and so were they.

How did you finance this deal?

Loan from my dad at 8% interest only.

How did you add value to the deal?

Was very outdated and unlivable. Also had an extremely overgrown backyard and some minor plumbing problems which cost $1892.57 to fix. (plumbers are stupid expensive)

My renovation included all new LVP flooring, new HVAC unit, new and used appliances, paint interior and exterior, new bath vanities, paint cabinets/add hardware, update plumbing, fix bad electrical breakers, fixed up the backyard shed, lots of landfill trips, fix the broken fence, along with a few other miscellaneous repairs.

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

Aaron Nelson helped me write up the contract and gave me valuable advise along the way.