BRRRR Investing in Roanoke

[Glenn Hastings]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $99,000
Cash invested: $10,000

BRRRR. 2/1 into 4/2. Refi'd out at 99k with only 10k left in the deal.

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

BRRRR Trial in new investment area. I wanted to see what the market held before investing more in the area.

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

Found it on the MLS and offered 75% of asking price of which they took it without negotiation.

How did you finance this deal?

HELOC of the purchase and then personal money to rehab. Then we refinanced.

How did you add value to the deal?

Finished the basement making it into a 4/2 from a 2/1. Added HVAC and legitimate plumbing. Increased square footage and made it an open floor plan. Added deck and parking to the back of the house.

What was the outcome?

Appraisal at 132k with 110k into it of which we took out 99k.

Lessons learned? Challenges?

Should have offered less for the property. We purposely bought the worst house we could find so we knew exactly what we would be up against if we wanted to do more.

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

My brother, Kyle Hastings, is a lender whom I worked through. And I had an agent that is a close friend that I would recommend.

[Glenn Hastings]

@Brian Beck I’m currently in the NOVA area not far from you actually. We should link up. I’ve been looking at doing some more flips but want to keep the Buy and Holds so I can eventually get out of my govt job. 

I went to Radford University not far from Roanoke. Had some friends that were from there and liked the area, then in my govt life, I had a classmate of mine that was a cop there and was an agent and a property management company. His mom and dad are really good friends of mine and they have been down there for over 40 years. They are agents, own a brokerage, lenders, and appraisers. So I figured I had part of a team In place down there so I should start doing some market research. There were a few things that peaked my interest... growing market, gentrification and jobs. VA Tech just launched a MD program with Carillon Hospitals in Roanoke, Breweries and Coffe Shops started opening up, flippers started coming in, Chick-fil-A, Lowe's and Starbucks all opened up shops and some luxury apartment complexes opened up as well. These are just some of the things I saw.