Updated over 2 years ago on . Most recent reply
A difficult project but successful addition.
Investment Info:
Single-family residence other investment.
Purchase price: $138,000
Cash invested: $80,000
This was my first BRRRR and fix and flip. We ran into a list of issues from a bad contractor to needing to replace just about everything in the home. We spent $20,000 over what the estimation was but the money was well spent. We moved the kitchen and reframed the master suite which had a big ROI. We listed it for rent and within 12 hours had a qualified tenant, lease signed, and deposits taken. It will cash flow strongly in a great market and overall we are extremely happy.
What made you interested in investing in this type of deal?
I have always been a long term buy and hold investor. I wanted to venture into BRRRR and fix and flip to learn the process. It was a big learning curve but glad I did it.
How did you find this deal and how did you negotiate it?
Local wholesalers.
How did you finance this deal?
Hard Money
How did you add value to the deal?
We replaced everything. The roof, the hvac system, plumbing,. We also reframed the master suite and relocated the kitchen.
What was the outcome?
Home is cash flowing around $600/m as of right now and will continue to cash flow when refinanced.
Lessons learned? Challenges?
You can do everything right in the home but you cannot change the location. We will be pickier with the neighborhood and street it is on as there are commercial buildings on each side which brought the value down.
