BRRR deal in Nashville TN

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Investment Info:

Single-family residence buy & hold investment in Hermitage.

Purchase price: $160,000
Cash invested: $50,000

This was a BRRRR strategy fix and hold. Appraised for $310,000 after 3 month rehab. One car garage was finished and added 300 square feet to house. Brand new kitchen, bathroom, roof, windows, and HVAC.

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

Wanted to get as much cash as possible back out of the deal so a BRRR was attractive. I've renovated a few homes before this so felt like it was in my scope.

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

MLS, I negotiated it myself as a licensed agent. Was able to get below asking price and then another $15k off the contract price due to a bad inspection with lots more wrong than we initially thought. I had the leverage of paying cash and being able to close quickly.

How did you finance this deal?

I paid cash up front for the purchase and for the remodel. I then took out a loan after 6 months (seasoning) on the rehabbed home. Appraisal came back $50k higher than what I originally thought it would when I purchased the home and ran the comps (due to the 2020 market really taking off and the project turned out really nice and the house looked great).

How did you add value to the deal?

The big ones were adding the square footage from inclosing the garage and then completely gutting and redoing the kitchen and bathroom. We also removed an above ground pool as well as piles and piles of junk from the backyard that likely scared other buyers off in the beginning. Lastly there was a sewage leak under the house that was nasty and seemed really scary but wasn't all that difficult to fix. Being willing to fix these problems added up to a great BRRRR deal!

What was the outcome?

I got pretty much all of the money back out of the deal! I rented the home at a premium price to really nice tenants. I am thrilled to have built twice the equity I originally anticipated! It was a lot of work and took a month longer than I thought it would but I would go back and do it all over again in a heartbeat!

Lessons learned? Challenges?

Looking back I did too much of the rehab work myself. I am focusing on hiring more work out and being less hands on in my future projects. Overall I am happy with how the house turned out and the design decisions made.

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

I've had a good experience so far using United Home Loans for my cash out refinance deals.