Updated almost 2 years ago on . Most recent reply
Another BRRRR - not as much cash flow but the equity was there.
Investment Info:
Single-family residence other investment.
Purchase price: $65,000
Cash invested: $70,000
The house was all about building equity and the long term game. This home also taught me 2 important lessons - it never hurts to ask and just because a contractor was good before doesn't mean he'll be good next time.
What made you interested in investing in this type of deal?
It was sitting on the market for a very long time.
How did you find this deal and how did you negotiate it?
MLS - swing for the fences and offer a low ball offer
How did you finance this deal?
Cash - from previous BRRRR
How did you add value to the deal?
Complete reno
What was the outcome?
$100 cash flow and $50K equity
Lessons learned? Challenges?
Never hurts to ask: The original MLS list price was $125K it dropped to $110K after 30 days and finally dropped to $95K after 3 months. I had my realtor reach out with a $60K cash offer. They countered at $70K and we settled at $65K. After putting in $70K in reno, I was all in at $135K. I pulled 130K out and it was appraised at $185K.
Contractor was great on 2 previous projects - but fell off towards the end of this one. Made a 3 month project 5.5 months. I didnt pay up front - that saved me.
