Updated about 3 years ago on . Most recent reply
Live-In BRRRR in Milwaukee, WI
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $115,000
Cash invested: $16,950
First in-house BRRRR! Purchased and lived in the home for a few years, renovated while we lived there, and have approximately $100,000 of equity as of 9/8/2022 (posting). Bought a new house, converted this to a rental with solid cashflow. Obtained a HELOC before buying our now home. Used that $50,000 HELOC to invest elsewhere while maintaining our low-rate 30-yr.
What made you interested in investing in this type of deal?
Could do the renovations myself to keep cost low, and do it as we lived there. First home, little cash invested, great ROI
How did you find this deal and how did you negotiate it?
Primary residence home purchase to get started!
How did you finance this deal?
Personal funds
How did you add value to the deal?
All-new kitchen, all-new bathroom, flooring and paint throughout. Re-finished the basement, and all for cost of materials only.
What was the outcome?
Additional $100,000 in value - $50,000 HELOC netting about $50,000 in equity
Cashflow of $745 /mo with 2-yr tenants in place
$50,000 HELOC used to invest with Developer for anticipated 40%+ returns
Lessons learned? Challenges?
Paying contractors moving forward, DIY can show in certain aspects and tenants will demand fixes anyways - do it once the right way and don't cheap out.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ethan Brooks Mortgage Team at Fairway Mortgage for all deals in WI, IL, and MI! >> https://www.ethanbrooks.mortgage/