My First BRRRR strategy (BUY,REHAB,RENT,REFINANCE, REPEAT)

[Christopher Garcia]

Investment Info:

Single-family residence other investment.

Purchase price: $230,000
Cash invested: $75,000

My partner and I were able to get this deal with a whole-seller 6 months ago. Both of us are real estate agents and have experience in rehabbing. We combined our team and within a week the rehab was done. The rehab consisted of replacing the roof, changing the floor, doing a new kitchen, updating bathroom vanities, and painting the entire house.

When we purchase the house it was already rented with a good tenant so we rented a hotel room for a week that way we could rehab the house and after we were done they went back home.

Very excited to see how much the house will appraise for. I look forward to announce the great news in the next couple of weeks.

If anyone has experience in mortgage and financing, I would like to know if it is necessary to wait 6 months to do the financing.

Purchase price: $230,000.00

Down payment: $50,000.00

Rehab Cost: $25,000.00

Estimated ARV: $320,000.00 - $350,000.00

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

The BRRRR strategy book and podcast.

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

It was an off market deal through a whole-seller. Comparable were very good and house did not need much repair so we offered full price.

How did you finance this deal?

Hard money lender with 20% down.

How did you add value to the deal?

By rehabbing the following:
Replacing the roof, changing the floor, doing a new kitchen, updating bathroom vanities, and painting the entire house.

What was the outcome?

Will be refinancing the house this month. ARV should be around $320,000 - $350,000.

Lessons learned? Challenges?

Always analyze comparable thoroughly and have a very good estimate for your rehab cost. (I tend to prepare for worst case scenario).

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

As a real estate agent I represented myself.