My first BRRRR deal - SFR in San Diego
Investment Info:
Single-family residence other investment.
Purchase price: $455,000
Cash invested: $650,000
My first BRRRR deal. Purchased an 800 sq ft 2bd/1ba single-family residence for $455k in 2019, which my builder partner Joseph Camile and I fully remodeled and added a bathroom (total cost: $80k). Remodel took about 2 months. Unit is now rented for $2900/mo.
What made you interested in investing in this type of deal?
Brandon Turner and David Greene's talk about BRRRR deals on the Bigger Pockets podcast.
How did you find this deal and how did you negotiate it?
My builder buddy found the property in San Diego and negotiated the purchase.
How did you finance this deal?
Cash deal with plans to pull cash out via a refi after the construction is done.
How did you add value to the deal?
On the back of the 8000 sq ft lot, we are building two new units: a 1500 sq ft 4bd/3ba upstairs unit and a 1000 sq ft 3bd/2ba downstairs unit. Construction was delayed, due to permitting delays from the city of San Diego, but construction is nearing completion. Total construction cost: $500k. Projected rents are $4500 and $3500.
Hoping to cash-out refi, with a valuation of $1.5M.
What was the outcome?
TBD.