My 2nd property was My First BRRRR Deal

[Joe Forte]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $35,000

3/2 Brick Cape Cod build in 1942

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

After my first deal using a conventional loan, I discovered the BRRRR method. After doing my research into how how I would complete the refinance portion, I stumbled on this Cape Cod. I was excited to get started BRRRRing....

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

Realtor. Offer included incremental counter-offers of $500 over a other offers, up to $5,000 over my asking price.

How did you finance this deal?

Paid Cash.

How did you add value to the deal?

Complete rehab. Gutted the kitchen, Gutted both bathrooms, Replaced electric panel, A/C, all new flooring - vinyl in the bathrooms, laminate in the kitchen, living room and dining room, carpet in the bedrooms and all of the 2nd floor, carpet squares in the basement.

What was the outcome?

The home appraised for $105,000, I pulled out $78,000, and left $7,000 in the deal.

Lessons learned? Challenges?

There is pried in renting. Families want nice finishes, and will pay extra for those nice touches. Coming back through to inspect the property after the tenants had been there for a while, was so rewarding. The decorations everywhere where all about family and love. They put mulch in the flower beds, and planted flowers, They made it their own, because I gave them a shot.