First "kind of" BRRRR

[Garry Anthony]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $24,000
Cash invested: $37,000

This is a 2 bed 1 bath house, with a detached garage. It was in need of some serious TLC.

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

I had one deal under my belt already, and I was wanting to give a rehab a shot.

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

It was on the MLS, and I negotiated through an agent. Get ready to hold my beer.... they were asking $25k, and I talked them down to $24k. Bam! 2 points for the home team! It really wasn't all that special, but it was better than nothing.

How did you finance this deal?

My business partner (my mom) and I went in on this 50/50. We paid cash and financed the rehab out of pocket.

How did you add value to the deal?

We repainted the outside, rewired the whole house and added can lights throughout, changed all the windows, redid the bathroom, put down new flooring throughout, repainted, and did some work in the crawl space.

What was the outcome?

When the rehab was finished, I started the refinance process. Due to loan terms, I decided to move into the house. By doing so I was able to pull out $4,000 more than I invested and have a low interest rate for the loan.

Lessons learned? Challenges?

I learned a lot about having patience. I was stubborn and wanted to do all the work myself. It was a good learning experience, but it caused the project to take twice as long as it should have. As the project was starting to seem like it was going to go on forever, I tried rushing some things along. Every time I did that, it bit me in the butt. So I wont be trying to find the fast way around things again.