First Flip - Turned BRR and What I learned.

[Kevin Peña]

Investment Info:

Single-family residence other investment in Salem.

Purchase price: $240,000
Cash invested: $60,000

Off Market Purchase - Rehab - Refinance - Rent

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

Financial Freedom - Experience - Opportunity

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

Personal Referral - Presented owner with my plan for the property and what I could pay to make it a fair deal to me as an investor based on the work needed. Listened to his needs and found a price and terms that made sense for everyone. Win, Win, Win!

How did you finance this deal?

Seller Carried Contract - Interest Only

How did you add value to the deal?

Full Rehab.

What was the outcome?

Cash out refinance - Covered Investment and aprox 20k in profit. Holding as a Rental and using the 20k as a reserve account for this property.

Lessons learned? Challenges?

A lot of lessoned learned on the contracting side. This was my first project managing subs and keeping a timeline. The hardest part was keeping timelines tight and not getting behind when subs are not completing work on time. Lesson learned - Sometimes the least expensive option when subbing out work can cost you more in the long run due to delays.