Failed Flip, successful BRRRR in Baton Rouge

[Alyx Victoria]

Investment Info:

Single-family residence buy & hold investment in Baker.

Purchase price: $80,000
Cash invested: $30,000

3 bed 1.5 bath Found on MLS listed at 100K and negotiated to $85k. Renovations include new windows, new ac, new floors, countertops, removing wall in kitchen, new bathroom vanities, new paint. Pretty much an entire home renovation! Initially planned to flip, but at the time I had another listing in the area that wasn't selling because it had only a half bath in the master. So because mine had the half bath too rather than putting it on the market to sit, I decided to rent and refinance!

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

I had been looking for a BRRRR or Flip and this one fit my budget and was in a decent area.

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

Found on MLS listed at over $100K, it had been on the market for 6-8 months. I made the offer at $85k cash, close in one week and they accepted.

How did you finance this deal?

I have a line of credit that I can basically make offers and close as if it were cash.

How did you add value to the deal?

We did a complete renovation.

What was the outcome?

It is currently rented and cashflows just over $400/month. It was refinanced, appraised at $154K and was able to finance $112k. Pulling almost all of my cash out, I did pay for closing costs out of pocket and have about $3k left in it.

Lessons learned? Challenges?

Always have multiple strategies for the property. I bought as a flip, but knew I could rent it out if need be. I had it on the market for one month before making the decision to rent. Turns out buyers didn't like the fact that it had only a half bath in the master. Now I will never buy a flip if I can't make it have a full bath in the master! However, tenants don't mind the half bath!
Also I learned that to pull cash out you have to wait 6 months before refinancing.

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

I am a Realtor so I found the deal myself on MLS. David Brian at Gulf Mortgage did my Refi, he is awesome.