BRRRR in Raeford NC with Numbers
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $46,000
Cash invested: $17,619
Contributors:
Bryant Tumbelekis
This was my first BRRRR property in the Fayetteville Market. In hindsight I may have overpaid for the property a little bit and definitely jumped at the opportunity to lock up a renter (rented in 10 days), but I am satisfied with the overall outcome. It was really important for me to prove BRRRR concept in this market & get comfortable with the team I was able to put in place. I was able to finance out the majority of my money. Unfortunately I left about $2000 in inspections/fees etc on the table, but they are negligible in the scope of things. I also paid an interest rate a quarter of a point higher then I should have. My fault for not shopping around more.
Purchase & Rehab - All in at $63,618.61
Appraisal - $115,000.00
Delicious Equity - $51381.39
Monthly #'s
Rent - 900.00
Vacancy 5% - (45.00)
Taxes - (90.00)
Insurance - (61.00)
CapEx - (90.00)
Property Mgt - (90.00)
P&I @ 5.5% - (361.00)
Cashflow - 163.00
What made you interested in investing in this type of deal?
I am always on the hunt for SFH investments. They really offer me the flexibility and risk tolerance I am looking for.
How did you find this deal and how did you negotiate it?
I have an awesome agent who brought this deal to me. He brought me the deal after another investor got cold feet and passed on it.
How did you finance this deal?
I purchased and rehabbed all cash.
How did you add value to the deal?
This home was beaten up. Usually I look for a value add like turning a half bathroom to a full, or adding an additional bedroom, but the comps were strong and I knew by cleaning the home up I could easily find the value.
What was the outcome?
50K+ in equity and a cash flowing asset!
Lessons learned? Challenges?
Sometimes you just have to take the plunge. Fear is natural, but you can overcome fear by removing as much risk as possible.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Bryant Tumbelekis at EXP. This guy is a PRO!