My first BRRRR property in pierce county purchased from MLS

[Thomas Myung]

Investment Info:

Single-family residence buy & hold investment in Orting.

Purchase price: $184,000
Cash invested: $50,000

My first BRRRR property in pierce county purchased from MLS $184,000 rehab cost ~$45,000
after pulling equity out $210,000 (cash out refinance), property is cash flowing over $300 per month with appraised value $350,000

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

location of the property was near downtown and walking distance to trails.
also I was desperate to find deals on market

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

We found property listed 189,000 in Nov. 2020. I have done analysis ARV of $300,000 (conservative since it's my first flip), rehab cost estimated ~$30k put offer in at $180,000 and agreed to meet in the middle purchase price $184,500

How did you finance this deal?

Cash. with gift money $30,000 from relatives

How did you add value to the deal?

full gut rehab

What was the outcome?

after pulling equity out $210,000 (cash out refinance), property is cash flowing over $300 per month with appraised value $350,000

Lessons learned? Challenges?

Make sure to have reserve cash after purchase- construction was delayed since we were counting on W2 income to support rehab
go walk inside properties before submitting the offer- in this case we missed foundation problem which increased rehab cost
Always pull permit.