Successful BRRRR in Spartanburg, SC
Investment Info:
Single-family residence buy & hold investment in Spartanburg.
Purchase price: $55,000
Cash invested: $87,000
This was a BRRRR that was purchased for $55,000 with a rehab of $32,000 for an all in cash of $87,000. The appraisal during the refinance was $135,000, which allowed me to pull out all of my cash. I cash out refinanced $93,000 so that after the ~$5,500 in closing cost, I was able to walk away with ~$87,500. The PITI is $644 and the home is rented for $1,050! It was a great success and I was able to recycle my cash to buy my next property!
What made you interested in investing in this type of deal?
Ability to recycle my cash in order to build a cash flowing investment portfolio!
How did you find this deal and how did you negotiate it?
Facebook / MLS
Negotiated using a cash offer and told the seller that I wanted to rehab the property to restore some of its character (Built in 1933).
How did you finance this deal?
Cash to purchase and then cash out refinanced with a local lender.
How did you add value to the deal?
Put approximately $32K in the deal. Added pillars to the foundation, replaced floors, new windows, new staircase, updated electrical, fresh paint throughout house, new appliances and updated landscaping!
What was the outcome?
Successful BRRRR as I was able to pull ALL of my cash out of the deal and still have a cash flowing rental property generating ~$400 in cash flow after PITI and ~$200 after reserves for maintenance, Cap-Ex and vacancy.
Lessons learned? Challenges?
Be conservative on the numbers when analyzing the deal and planning the rehab. Focus on the process and end goal without getting distracted by "issues" that may arise.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Prime Lending (Scott Gragg) for the cash out refinance!