First BRRRR & Out of State Investment

[Sally Carr]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $15,000

Found this deal on the MLS. Bargained with the owner for $5,000 less than asking. Turns out the agent we were using was trying to side hustle as a property manager, but her employer had better rates. We signed up with them and had their contractor do the repair work. We quickly got it rented to a great tenant and are now cash flowing. Looking to refinance it soon.

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

Wanting to expand our cash flow by BRRRR after reading the Long Distance Real Estate Investor and BRRRR books.

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

Found this deal on the MLS. Bargained with the owner for $5,000 less than asking.

How did you finance this deal?

We borrowed $20,000 from a local investor at 10% with monthly interest only payments for 9 months. We used credit cards to do remaining rehab.

How did you add value to the deal?

Changed it from a 2 bedroom / 1 bathroom to a 3 bedroom / 1 bathroom by converting an extra utility room. Fixed roof, flooring, interior / exterior paint, fixed siding, and replaced furnace.

What was the outcome?

We quickly got it rented to a great tenant and are now cash flowing $580 per month.

Lessons learned? Challenges?

Need to shop around for the best realtor and property manager. Have the property manager recommend the contractor.

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

We have a hard enough time getting ahold of this rock star, sorry.