My fourth huntsville long distance BRRRR and one of my easiest.

[Gorden Lopes]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $3,000

A straight forward easy long distance BRRRR in a great area of Huntsville. Bought this for 200K, spent 4K in paint, small fixes and landscaping and got it appraised for 250K and got it rented for 1695!

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

This was a no brainer. I knew the zip code and the area very well.

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

I had build a relationship with an out of state wholesaler in a previous off market deal that fell off and had built trust and friendship. When the wholesaler found another deal in huntsville, he just forwarded this to me and one other investor so there was not much competition!

How did you finance this deal?

All cash. The owner needed cash quickly and I was able to close it in 9 days.

How did you add value to the deal?

Just basic cleanup, paint, landscape. The house was already in a great condition. The only risk here was that the owner needed 30 days after closing to move out and I was ok with handling the situation where I had to evict them out in case they don't move out but it was fairly smooth process where they moved out after 30 days.

What was the outcome?

I was able to able to rent it for 1695 within few days after cleaning and painting. I am in the process of delayed financing and the house got appraised for 250K.

Lessons learned? Challenges?

There are two important lessons that I learned
1. Building relationship is critical. I worked with the out of state wholesaler in another deal (that did not close, crazy story where owner went behind our back) and so the wholesaler already trusted me.
2. Sometimes you can just get plain lucky by being at the right place at the right time.