Updated almost 5 years ago on . Most recent reply
BRRRR #2 - Greenwood
Investment Info:
Single-family residence buy & hold investment in Raytown.
Purchase price: $79,000
Cash invested: $105,000
Purchased this REO property off of MLS and put in some forced equity via rehab. Mostly cosmetic, although it did have some plumbing issue, which was why this property was "cash only" and not available as a conventional purchase.
What made you interested in investing in this type of deal?
To add to my rental portfolio using the BRRRR strategy
How did you find this deal and how did you negotiate it?
Found this deal on the MLS. This was a bank-owned (REO) property. I did not negotiate on this deal because this was listed below market value. The realtor who listed couldn't believe the bank wanted to list it at 79k.
How did you finance this deal?
Mostly through PML
How did you add value to the deal?
Rehab - mostly cosmetic with a minor plumbing issue.
What was the outcome?
Rented out for $1100 + $50 pet fees
Appraised at $144k. Cashout refi on a 30yr fixed @ 4%. HOMERUN!
Lessons learned? Challenges?
This was purchased 4/2020, right at the start of COVID and extreme uncertainties. I was so scared to jump on this deal and wanted to back out many times while under contract. It turned out to be a fantastic deal where I have no money left in the deal!
