BRRRR Property in Milton, Delaware

[Shawn McDonnell]

Investment Info:

Single-family residence other investment.

Purchase price: $140,000

Bank owned single family home, 4 bedroom, 1.5 bathrooms in rough condition. Cosmetic renovation on the home. Made half bathroom into a full bathroom and turned one of the bedrooms into a laundry room/utility room making the house a 3 bedroom, 2 bathroom. Having 2 full bathrooms and a dedicated laundry room made it a more desirable rental. We also made it pet friendly which allowed us to get a higher rent.

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

House was only 20 years old, simple rancher, on a great lot in an up and coming town. Was in bad shape but it was almost all cosmetic so we could renovate it pretty easily and not have to spend a lot of money.

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

MLS. Cash offer, quick close, no contingencies.

How did you finance this deal?

Private money lender.

How did you add value to the deal?

Renovated home. Converted half bath to full bath.

What was the outcome?

After renovation, we refinanced into a 15yr fixed loan. Put a long term tenant in place. Cash flow is $200/month

Lessons learned? Challenges?

We slightly underestimated the renovation cost. We still were able to pull all of our money back out but barely.

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

Pete Green with Atlantic Bay Mortgage did our refi and he is excellent.