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Updated over 3 years ago,
BRRRR turned into flip #2
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $215,000
Cash invested: $130,000
Sale price: $415,000
The property is a single-family home that initially had 3 bedrooms and 1.5 baths. After renovations, we took a bedroom to add a master bathroom upstairs and converted the attached workshop into an additional main-floor ensuite bringing the home to a 3 bedroom 3.5 bathrooms.
What made you interested in investing in this type of deal?
initially, we purchased it for my in-laws to eventually move into and while we waited we would operate it as STR to cover expenses and make a profit to grow our investment portfolio.
How did you find this deal and how did you negotiate it?
We found it initially as a "for sale by owner" on our nightly walk. Initially, our first offer was not accepted and we thought we lost the deal. Upon a follow-up call with the owner a couple of weeks after the rejection, we learned their deal was falling apart and we continued the conversation to lock in a backup offer that was finally accepted at $5,000.00 less than our initial offer.
How did you finance this deal?
We used a conventional loan to finance the deal and private money for the Rehab.
How did you add value to the deal?
This ended up being a full gut rehab with the addition of 2 bathrooms and making 2 master suites.
What was the outcome?
We had a good outcome with good profit for our second flip as we started to implement systems in the renovation process.
Lessons learned? Challenges?
We continued to learn a lot of lessons as a new investor specifically the renovation process and when to cut your losses and gut the house. At the start of the project we were attempting to save as much as possible but eventually ended up having to gut the entire house due to structural issues and dealing with plaster walls.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Our agent was the best one yet (maybe a little biased as it is my wife), Hillary Kline, and our lender was Bill Mecklenburg of prosperity home mortgages who continues to go above and beyond to help us grow our real estate portfolio.