Double BRRRR on a Kansas City SFR

[Kendall Short]

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $70,000
Cash invested: $5,000

2018 Purchase

2Bed 1Bath in Kansas City
$70k PP
$27k Rehab
Cash out Refi at $118,5 (4.875 rate) after 6mo and initially rented at $1000

Payment $769
Rent $1200

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

I had looked for a duplex for a couple years straight out of college. Moved back in with mom and the neighbors two doors down had mentioned they were looking to sell. Worked an off-market deal on this SFR and it's paid dividends ever since.

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

I had looked for a duplex for a couple years straight out of college. Moved back in with mom and the neighbors two doors down had mentioned they were looking to sell. Worked an off-market deal on this SFR and it's paid dividends ever since.

How did you finance this deal?

Conventional 30 Year Mortgage

How did you add value to the deal?

Complete rehab, open up walls, furnish with appliances, complete fencing.

What was the outcome?

Completed BRRRR within 6mo. What really makes this old deal sweet is that I only have about $4-5k cash into the deal, but it is now valued at $155-$160k, so I am doing another cash-out to drop the rate down to ~4.125 and only increase the payment by ~$20 per month (75 LTV). Another $22k out to fund part of the rehab on the deal I am closing on in a week!

Lessons learned? Challenges?

Do not go cheap on the rehab or skip fixing an old AC. I had to replace the AC unit itself the first summer after renting it. Wasn't a huge expense, but it was the one thing that I didn't update and it came back to bite me!

Also had never used tools before and learned a lot about the labor side of things. Figured out what I like and don't like doing.

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

Cory Stewart of Weichert Graham-Welch in Shawnee, KS was my buyer's agent. Would recommend 10/10 times. Master negotiator.