1st BRRRR Investment

[James King]

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $128,000
Cash invested: $10,000

3 bed, 2 bath, 1 car garage built in 2005 on .17 acre, fenced in back yard

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

The location is in an area of town where lots of development has been permitted to take place over the next 3-5 years. I anticipate lots of growth and hope it raises the value of the home along with the demand to live in the area. besides being close to town and a desirable floor layout. It was at the right price and I felt comfortable making the repairs myself.

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

It was on the MLS and was already reasonably priced. I did negotiate here and there but as fierce as the market is in this area with cash buyers I was surprised I came away with it under a conventional loan.

How did you finance this deal?

conventional loan with 20% down

How did you add value to the deal?

New trim, doors paint, flooring, concrete patio, countertops.

What was the outcome?

Still under construction I will let you know once we get our first renter

Lessons learned? Challenges?

so far, I wish I would have negotiated more up front but I am still learning and tuition is not free.

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

Shannon Wurster has helped me with several purchases in the area. this just happened to be the first investment property. She is a phenomenal agent who constantly provides feedback and pays attention to requests.

[Matthew Jordan]

@James King congrats! Is the $10K for renovations? At 20% down + closing costs I'm not sure I am following. I am also curious why you decided to go with a conventional loan and put long term debt on the property now vs after the renovation? What rent do you think you will achieve after renovations are complete?