First BRRRR Deal Details

[Jason Knight]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $39,900
Cash invested: $29,205

1st BRRRR deal with 3K left in the deal for 45% ROI, 30K forced equity. Not too shabby for first BRRRR.

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

I like the idea of taking an unlivable house and making it rentable! The ability to get most of my cash back and still cash flow plus equity is pretty sweet.

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

Found through a turnkey provider after about a month of looking at deals. There wasn't much room for negotiation since wholesaler, agent/turnkey wanted their piece.

How did you finance this deal?

This was all cash.

How did you add value to the deal?

Redid bathrooms, kitchens, cleared city violations, refinished the hardwood.

What was the outcome?

30K forced equity, $200 cashflow, 3K left in after cashout refi.

Lessons learned? Challenges?

I would like to improve my networking with wholesalers. I have two more BRRRRs in process, so I am now working with agent and contractor to save cost (no more turnkey).