Updated about 2 years ago on . Most recent reply
Our First BRRR (Cleveland)
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $75,000
Cash invested: $20,000
Small Single-Family House. Heavy renovation including electrical overhaul, septic system and entire interior replacement.
What made you interested in investing in this type of deal?
Looking to build a local portfolio for cashflow in an appreciating area.
How did you find this deal and how did you negotiate it?
On-Market deal. It was a probate property that was not cared for long before it hit the market. Used our tools to get an offer in ASAP at asking price.
How did you finance this deal?
DSCR buy rehab loan.
How did you add value to the deal?
We repaired the foundation issues, upgraded the electrical, added central HVAC, refinished the floors and renovated the interior.
What was the outcome?
This was a great learning experience and now has the ability to provide us cashflow, in addition to getting our cash outlay back.
Lessons learned? Challenges?
Learned a few more things to look for during inspection period. Challenges were primarily managing the crew doing the work. We're still building a solid team in the area, and had to take some lumps (LOL).