First BRRRR in Central Arkansas

[Joshua Schmidt]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $55,000

Bought this house at an auction with traditional financing. We (my partners and I) put 20% down, which means we financed $120,000.00. We put 30k down and rehab was 25k. We will be all in for about 180k. Our plan was to rent it for $1600 a month and refinance to pull our cash out. A little about the house, it is a 4 bd, 3 bath, 3000 sq ft, built in early 70s and is built in traditional style. After refi we are cash flowing nicely and looking for next deal!

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

Bigger Pockets Podcast

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

Auction

How did you finance this deal?

Traditional Financing

How did you add value to the deal?

Almost a complete gut job....new roof, floors, paint, countertops, expanded master closets, new lighting and fixtures, white washed chimney inside house as well as another brick wall. House turned out beautifully!

What was the outcome?

Bought this house at an auction with traditional financing. We (my partners and I) put 20% down, which means we financed $120,000.00. We put 30k down and rehab was 25k. We will be all in for about 180k. Absolute homerun! Purchase price 150k, remodel around 30kish, ARV 250k, refi 175k. Left 5k in the deal. Mortgage is $1070, rents for $1600.

Lessons learned? Challenges?

I was deployed to Afghanistan when I bought this property. I had a great team in place to helped make this go smoothly!

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

I am an agent and worked with a FANTASTIC lender. She was absolutely a rockstar!