My first BRRR investment
Investment Info:
Single-family residence buy & hold investment in Neptune.
Purchase price: $50,000
Cash invested: $30,000
2-bed, 1-bath home, currently renting for $1,461 a month. Was purchased cash for $46k, refinanced home and used money to fund down payments for future deals.
What made you interested in investing in this type of deal?
Great price with significant value add potential
How did you find this deal and how did you negotiate it?
Agent / Investor brought this deal to me. Seller was about to loose home to tax sale, paid back taxes and double the amount paid via credit off sale price.
How did you finance this deal?
Used personal loans
How did you add value to the deal?
Cleaned house out, installed new floor, paint, new furnace, repaired kitchen and bath.
What was the outcome?
Home is rented out, receiving 5% increases every year.
Lessons learned? Challenges?
Home took longer than expected to get rented out, which made it difficult to refinance right-away once rented out.