Our First, Official BRRRR

[NA Negrete]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $74,000

Off Market deal. Took 2 yrs to get! Our first "BRRRR". At the time of purchase ARV was $280k. We just got the refi done and appraisal came in at $317k. The cash flow isn't the best but hey, it's cash flowing! Great location and big lot. Future plane is to add an ADU and get the property next door, LOL.

Yes, went over budget. About 5k unexpected costs. (Water collected under house when it rains. Our inspector prior to purchasing didn't catch the rotten support beans. Given it was a dry season when he checked. Still.... unexpected fix plus adding french drains to fix the problem.)

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

We,well... I, Jodi, love fix and flips. Saul is all about buy and holds. This deal made us both happy.

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

This deal was a "Driving for $". We sent marketing to the Owner a few times before she called. Once she called she asked how much without seeing the property. I gave her a # and she said she would call me back. She never did. I kept reaching out. Leaving voice messages every time I called. Then one day she called me asking for my # again with out seeing the property and the negotiating started. (The whole processes took about 2yrs.)

How did you finance this deal?

We used hard money.

How did you add value to the deal?

This was a total gut/rehab project. New roof, gutters, flooring, ceilings, paint inside and out (that blue wasn't suppose to be that bright!) . New kitchen and a semi rehab with the main bath. Not to mention major yard work.

What was the outcome?

The outcome is good. Saul is very happy with it. I would prefer more cash flow then $189.50. I know rent can come up a bit but we will see how COVID will be once the lease is up for renewal.

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

Great to work with Nghi Le and Certain Lending!