3rd BRRRR in Western New York
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $40,000
Cash invested: $80,000
This was our 3rd BRRRR. Rehab went way over budget and time-line doubled. Appraisal came in 40,000 lower than expected ($80,000). Going to get $60,000 back out in the Refi. Basically our worst BRRRR but we are moving on!
What made you interested in investing in this type of deal?
Nice home in a nice neighborhood.
How did you find this deal and how did you negotiate it?
Found on Redfin and made an offer on day 1. We put in all cash offer.
How did you finance this deal?
Our pockets
How did you add value to the deal?
New paint, roof, windows, flooring, redid kitchen and bath, repaired garage and added new door.
What was the outcome?
Way too low appraisal. Tried to challenge it and provide recent comps but appraiser refused to speak with us.
Lessons learned? Challenges?
Sometimes you get crappy appraisals. Maybe we can request not to have that one next time. Be on top of Property manager and projects manager. Fired people if you need to.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Rick McMahon Real Estate Agent
