1st BRRRR - Off to the races!

[Cass Lowrie]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $98,000
Cash invested: $22,000
Sale price: $200,000

This is my first BRRRR and I'm very excited to test this strategy. I purchased the home for $98K. It needs $22K of updating/renovations. The ARV appraisal came back at $200K and this purchase comes with 2 additional adjoining lots that are buildable.

This 2200 sq. ft. brick ranch will rent for $1300 month and cash flow nicely. We'll use the equity in this house and the equity in the additional lots as collateral to obtain construction financing for the duplexes on the adjoining lots.

When this project is complete, we'll have 5-6 doors that cash flow with nearly $125K equity!

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

Purchased at 50% ARV and came with 2 additional buildable lots.

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

My daily searching of MLS, Zillow, Marketplace and CL.

How did you finance this deal?

Hard money lending partner. 90% purchase, 100% rehab to to 65% ARV,

How did you add value to the deal?

Renovations. Mostly lipstick and a new roof.

What was the outcome?

We are just about to close and get started. Out come in 2 years will be 5-6 doors that cashflow with $125%-$150K equity in a fast growing area.