Investment Info:
Single-family residence buy & hold investment.
Purchase price: $50,000
I purchased this home for $50K in 2008. I put $10K down and spent $15K intitally on the rehab. I currently have my second tenants in it and have replaced carpets and HVAC since the original purchase. I just refinanced the property in 2019 and now have Zero money invested. At this point I am on inf ROI. I keep the rent at about 90% market which keeps my tenants in long term.
What made you interested in investing in this type of deal?
I had a friend that was flipping houses at the time and I was trying to learn from him while also learning from practical experience.
How did you find this deal and how did you negotiate it?
I found this deal with a realtor using MLS.
How did you finance this deal?
I used a conventional loan initially and just refinanced it with another conventional loan pulling out my initial investment.
How did you add value to the deal?
I replaced the roof, repainted the interior, replaced the HVAC and installed new carpet. I put in a new refrigerator. Once the current tenant moves I will upgrade the kitchen and bathroom to add more value.
What was the outcome?
I held this property on a conventional loan leaving my investment funds locked up for 11 years. After reading about BRRRR I refinanced pulling out all my initial investment and keeping 20% equity in the house.
Lessons learned? Challenges?
I plan on using the BRRRR strategy to purchase more properties, instead of leaving the capital locked up in conventional financing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
The professionals I used at the time are now retired. However I do use Caldwell Banker Brown for property management and would recommend them for anyone looking in the area.
