BRRRR Deal Story

[Elizabeth Shvartsman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $30,000

I acquired this Troy, MI property after noticing it sat on the market longer than comps, and when a higher offer fell through, I stepped back in with a clean cash offer using a private loan I structured through my work with REIF Loans. During rehab we uncovered a leaking roof, a winter related burst pipe, and rusted gas lines, all of which were addressed quickly. After repairs, I placed a tenant to stabilize income and will work to secure a longer-term DSCR loan.

What made you interested in investing in this type of deal?

I’ve been investing since 2010, and I’m always looking for value‑add opportunities where I can leverage my construction and restoration background. This property had been sitting on the market longer than expected for the area, which usually signals either a pricing issue or hidden condition issues — both of which create room for negotiation and upside.

How did you find this deal and how did you negotiate it?

I identified the property through standard MLS activity and noticed it wasn't moving. I made an offer, but the seller initially accepted a higher competing offer. Two weeks later, I followed up with the listing agent and learned that the other buyer failed to close.
At that point, I stepped in with a clean cash offer and a guaranteed closing before year‑end. That certainty mattered to the seller, and I was able to secure the property at the price I originally targeted.

How did you finance this deal?

I financed the purchase using a private loan. Because I also operate in the lending space through REIF Loans, I was able to arrange the funding quickly and efficiently, which helped me close on the timeline the seller needed.

How did you add value to the deal?

The property had been owner‑occupied for over 20 years with deferred maintenance. My value‑add plan focused on:
- Addressing structural and mechanical issues
- Updating the interior finishes
- Improving curb appeal
- Modernizing outdated systems
My background in restoration helped me manage the renovation efficiently and make informed decisions about what to repair, replace, or upgrade.

What was the outcome?

The project is a strong example of identifying a stale listing, negotiating from a position of patience, and executing a renovation plan that materially improves the property’s value. Despite unexpected issues, the project moved forward successfully because the numbers and strategy were solid from the start.

Lessons learned? Challenges?

This deal came with several surprises:
- A leaking side roof that couldn’t be inspected before closing
- Winter conditions that led to a burst pipe
- Rusted gas lines that required replacement
The biggest lesson: long‑term owner‑occupied homes often hide deferred maintenance, especially in areas that aren’t easily accessible during inspection. Building extra contingency into the budget is essential.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I handled the financing myself through REIF Loans, an investor‑focused lender. For investors navigating similar projects, I always recommend working with:
- A responsive listing agent
- A contractor who understands value‑add renovations
- A lender who truly understands investment deals and can finance a wide range of strategies — from flips and BRRRRs to rentals, construction, and bridge loans