First BRRRR deal in Pittsburgh
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $53,000
Cash invested: $36,000
This was my first experience with BRRRR. I secured a line of credit against my primary residence for $85,000. I took the full amount out and purchased a single family home for $53,000 and rehabbed the whole thing top to bottom. This included, plumbing, electrical, a retaining wall, HVAC, flooring, kitchen, bathroom, paint, fixtures, ETC. My total invest in the property, including holding costs, is just north of $88,000. The house recently appraised for $140,000.
What made you interested in investing in this type of deal?
The numbers made sense. I had looked at and analyzed over 50 deals. This one fell into my lap (the seller had reached out to me). I was able to get the property at a premium do to the scope of work (80% of which I could do myself).
How did you find this deal and how did you negotiate it?
My father-in-law is a contractor. He was working on the house across the street when the seller approached him and asked if he wanted to take a look. He called me to let me know it could be a pretty quick turn around (2 months).
How did you finance this deal?
HELOC
How did you add value to the deal?
I updated everything in the house. Although I ended up spending a little more than I had originally wanted to, I feel that the extra money spent allowed me to ask for a little more in rent.
What was the outcome?
Felt like a fairly successful BRRRR. I didn't have to leave any money in the deal and I now have the capital to inject into the next deal.
Lessons learned? Challenges?
Finding the right tenant is a process. We had 75 applications come in when we posted the property. It took an extensive amount of time showing the property, vetting potential tenants, and drafting the lease (thank you BP for the PA lease package!).
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Anjelica Kopsahilis. Would highly recommend her to anyone who is getting started.