An Accidental BRRRR! My first deal!

[Dana Hendrix]

Investment Info:

Single-family residence other investment.

Purchase price: $50,000
Cash invested: $15,000

This was a BRRRR property that is a 1,600 3/2 house on a 2 acre lot. The Property appraised for $150,000 and I took out a loan for $100,000 in August on 2020.

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

This was my grandparents home.

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

This was my grandparents home. They had both recently passed and none of the other family members either wanted the property or had the means to purchase it. Since my wife and I didn't want to see the bank foreclose the property we decided to purchase the property. We told my aunts and uncles that we would pay them whatever the land appraised for since the house didn't meet the current code, and we couldn't get a traditional mortgage on the property.

How did you finance this deal?

An 3 year balloon payment land loan for 25% down.

How did you add value to the deal?

We had an appraisal done.

What was the outcome?

We remolded parts of the house and brought the property up to code mostly ourselves. We refinanced out $100,000 getting our original investment plus some out. This property is currently rented out for $900 a month.