4th deal move in BRRR

[Walter Anderson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $74,000
Cash invested: $35,000
Sale price: $125,000

Move into fixer upper-

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

I believe it was a Fanny Mae Homepath property. Because of this, If I moved in I had first dibs in buying the house over other investors.

How did you finance this deal?

I think it was about 7Kish to get into the property 3.5% down on a conventional loan, then I spent about 35K in the renovation.

How did you add value to the deal?

We were able to take the basement and turn it into a bedroom and also the room off the kitchen and turn it into a bedroom. The house went from a 3/2 to a 5/2. Spent 35K in fixing it up

What was the outcome?

After 6 months I refinanced it as a owner occupancy and soon to be 6 months after refinance I am looking to move out and find another house (we will see in this market). I was able to get 80% refi out. I left some money in this one (10ish K) but have a nice rental.

Lessons learned? Challenges?

My new mortgage is about 600 a month, and I am looking to rent it for 1300 a month after I move out and use it as a rental. Not a perfect BRRR but it will do-