Creative BRRRR deal on the MS Gulf Coast

[Pat Heidingsfelder]

Investment Info:

Single-family residence buy & hold investment in Biloxi.

Purchase price: $40,000
Cash invested: $30,000

Great BRRRR property, originally a 3/1 converted to a 4/2. This purchase was originally a Sub2 with cash invested for rehab, then refinanced to pull everything back out!

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

Could of different investing methods wrapped up in this one. Easy purchase on the front end, horrible looking property made amazing.

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

Brought to me by my broker, negotiations were smooth he's a creative guy.

How did you finance this deal?

Subject to the original financing. I took over the notes while under renovation. Paid cash for rehab.

How did you add value to the deal?

Added an extra bedroom and bathroom, full rehab, roof, windows flooring, kitchen baths, etc.

What was the outcome?

Great cashflow once rehabbed. Appraised for exact value I needed. Pulled all cash out after refinancing.

Lessons learned? Challenges?

It's not quite so cut and dry to refinance Sub2 deals, most banks don't understand even when they say they do.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

eAgent Solutions, MS Coast Rentals