BRRRR Single Family Rental

[Jon Hyatt]

Investment Info:

Single-family residence buy & hold investment in Bangor.

Purchase price: $55,000
Cash invested: $75,000

This was a single family home that I did a BRRRR on. I purchased with cash, did a small renovation, then the management company I own filled it with a qualified tenant and we then presented the new value, new lease/income to the bank and refinanced 100% of the funds back out.

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

Was a great off market, vacant property. It could have worked well for a Flip or a BRRRR. I look for single family properties that I can flip to my RE Team at Keller Williams or that I can BRRRR with my Management Company, SI Associates. This deal had two great exit strategies.

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

This was an Expired MLS listing that I called with interest to purchase. Met the owner at the property and learned their motivation, their reasoning for needing to sell and what was most important to them. The property had been a headache for them for the previous year, having squatters there after they had someone living there for free just to care for the property. Long story short they had some debt tied to the property, we were able to pay that off for them, plus a small extra for them.

How did you finance this deal?

Private Money loan using a HELOC on a 3rd parties residence.

What was the outcome?

I refinanced this and hold it as a rental today, the private money loan was paid off in full + interest earned. That private lender was happy with the transaction.