Updated almost 4 years ago on . Most recent reply
Torrington SFR Investment
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $78,000
Purchased from a flipper who ran short on funds mid rehab. I completed the rehab for approx. $12,000 for an all in investment around $96,000. The property rented for 1,200 a month for the first two years but is now rented at $1,500. My latest refinance of this property was at a value of $185,000 for a complete cash out BRRRR deal
What made you interested in investing in this type of deal?
With this deal being my very first I had reservations about getting into a larger remodel. My agent at the time had worked with this flipper in the past and was an advocate for the work they had done on prior projects. He advised that upon me completing the renovation (Some flooring, trim, paint, and a new boiler) that the property would be worth $120k. Seemed like a conservative starting point so I went ahead.
How did you find this deal and how did you negotiate it?
Agent. Seller was asking 85K but was in need of freeing up funds. I offered 72, they countered with 80, I countered with 78 contingent on them replacing all of the windows in the house.
How did you finance this deal?
Cash
How did you add value to the deal?
Distressed owner allowed for immediate walk in equity.
What was the outcome?
Still own it today as a long term rental.