First attempt at Out of state BRRRR

[Aj Parikh]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $109,500

This property would be my 1st attempt at a BRRRR as well as an out of state BRRRR.

What made you interested in investing in this type of deal?

I had owned a SFH in the same neighborhood through a turnkey company and had a property management that was really managing it well. So I was confident on managing another one in the same area if I found something.

How did you find this deal and how did you negotiate it?

I just reached out to the property management to find me another deal in the same zip code and after a few months, they found me an off market property that I bought all cash and was able to close in 2 weeks.

How did you finance this deal?

I was able to arrange the funds to buy it all cash from a private lender so the closing costs were minimal.

How did you add value to the deal?

I added $8000 worth of rehab costs that my property management recommended.

What was the outcome?

I estimate the property to be worth in the mid 140000 and I am currently in the process of a cash out refinance and waiting on the appraisal.

Lessons learned? Challenges?

The challenge with a BRRRR is that the cash out refinance is never in your control so the cash flow can change a lot depending on what the property appraises and what interest rates you can get