Investment Info:
Single-family residence buy & hold investment in South Chesterfield.
Purchase price: $66,000
Cash invested: $73,000
This is my first BRRRR. Got an amazing deal on the purchase through a wholesaler in the Richmond area. Already had tenants and there was very little rehab to do initially.
What made you interested in investing in this type of deal?
Educating myself through Bigger Pockets and catching the vision for the BRRRR method.
How did you find this deal and how did you negotiate it?
I got offered this deal through a wholesaler that I connected with through a friend. No negotiating really. The numbers added up and since this was my first one, I wanted to just jump and get started.
How did you finance this deal?
Cash from my HELOC.
How did you add value to the deal?
Didn't have to do much for this one. I put in new kitchen flooring, patched a few walls and cleaned up the front of the house with new shutters, paint and landscaping.
What was the outcome?
I was told this house would appraise for at least $100,000, maybe $110,000. Instead we got $160,000!!! Unbelievable. The current market helped us out but also the combination of getting a low price through a wholesaler and doing the right things with a light rehab. In the end God was very gracious with us. We were able to take out $104,000 in the refinancing which not only paid all my invested cash but also covered the $23,000 I used to buy another property with a subject 2, w/ money leftover.
Lessons learned? Challenges?
Dive into real estate. Analysis paralysis is real and sometimes you need to trust what you have learned and take the risk. A friend of mine passed up this deal at first since there were already tenants in place.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Forrest McGhee - a wholesaler and investor in Richmond, VA.
Tom Potter - A Lender with US Commercial. He was super easy to work with in terms of getting refinancing with an LLC. He got us an amazing rate!
