Updated over 4 years ago on . Most recent reply
My First BRRRR Deal in Cleveland
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $41,000
Cash invested: $89,000
This property was a BRRRR deal, completed during the midst of the COVID-19 pandemic. Renovations took twice as long as expected, but was able to stay on budget by using a great handyman and doing alot of work myself. Spent 2-3 nights per week at the property and a full weekend day for the better part of eight months, but it was all worth it.
What made you interested in investing in this type of deal?
Wanted to do a BRRRR as my first deal to recycle seed capital and keep momentum. House was owned by same family since 1920.
How did you find this deal and how did you negotiate it?
MLS. Was on market for 2 weeks in very hot market. l I presented a cash offer 20% lower than list right before Christmas, and settled slightly above my offer. Wrote a personal note to the family, explaining my plans for the home. Love house shopping in winter...
How did you finance this deal?
Cash - My Own
How did you add value to the deal?
Full renovation. House was listed as a 4/1. Added a bath to the second floor, as most homes in the area either only have one bath or second bath is below grade.
What was the outcome?
Perfect BRRRR. Refinanced all my investment out and rented for almost $200 more than I ran my numbers at.
Lessons learned? Challenges?
-It is my responsibility to build a process and timeline for my contractor to follow.
-Picking up tons of material from Home Depot is no fun. Have everything delivered in 2-3 drops.
-Should have started sooner.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Mark Deeter of Keller Williams
Most Popular Reply
Hey Mike,
I must say that you are the first successful brrrr I have heard of in a long time and I am very impressed!
How much was your appraisal and cash out refi for?