Single family BRRRR in Bridgeport, CT
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $90,000
Cash invested: $46,000
3 bed, 1 bath single family rental
Strategy: BRRRR
Purchase: $90,000
Renovation: $46,000
ARV: $205,000
Rent: $1850/month
Refinanced at 75% ARV to pull out the initial investment and then some.
What made you interested in investing in this type of deal?
The numbers looked good from the beginning and also left room for error.
How did you find this deal and how did you negotiate it?
Off market from a wholesaler.
How did you finance this deal?
Hard money loan with 15% down and most of the rehab costs were included in the loan. We used a HELOC to make up for expenses that exceeded the loan. Did a cash out refinance into a conventional 30 year mortgage after the 6 month seasoning period.
How did you add value to the deal?
Complete renovation- kitchen, bathroom, flooring, landscaping, paint throughout, plumbing and electrical.
What was the outcome?
The finished product looks great and it appraised for more than expected!
Lessons learned? Challenges?
I never knew how many renters have terrible credit. Out of the 50-75 people who inquired about the rental, less than 5 had a credit score above 600. The tenant I chose had a credit score around 575, but he had sufficient income and my gut instinct about him was good. He has been late every month with payments but does pay. I don't regret choosing him so far.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ask me for references, if interested.