This was a great single family rental. We opened the floorplan by removing a wall, changed all the fixtures, installed LifeProof LVP, new cabinets, granite countertops, and fresh paint. It was a successful BRRRR :)

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

I love the idea of purchasing houses with infinite return, which BRRRR allows you to do!

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

I had a cold caller working for me for a couple months, which I hoped would help my wholesale business. It did not help my wholesale business, but it did get me this deal.

How did you finance this deal?

I used private money at 8% annual.

How did you add value to the deal?

We installed new cabinets, removed a wall to open the space, new granite countertops instead of laminate, replaced the carpet with Lifeproof LVP, did a two color paint scheme on the wood paneling, remodeled the master half bath, refinished the tub in the full bath, new vanities, new appliances, and new six panel interior doors instead of slab. Also added a backsplash and built a soffit for the cabinets, and drywalled/textured the dining room.

What was the outcome?

It is a great house and I want to live there, but instead we are getting above market rent with amazing tenants who leased it before we even were finished. It rents for $1300/month. Reno and holding costs were $26,567 with reno and holding costs and interest payments. We purchased for $68,000. Our appraisal was $142,000 and our cash out refinance was $101,500, so we had about $7,000 left over. 4% interest, 30 year mortgage.

Lessons learned? Challenges?

We had aluminum wiring which was a royal pain. Especially when all of the outlets and switches we bought and installed were for copper. So we had to redo all of those. Besides that, taking out the wall was fun and less work that expected. There was also light termite damage so we had that checked and it wasn't structurally a problem, fortunately, but we now are protected. Overall, it was a great project and took us about 2.5 months to finish.

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

We did our Cashout Refi through GMFS in Louisiana and were pretty happy with them. Our granite guys were good too. TC Stone.