First Deal - Turnkey BRRRR
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $69,000
Purchased a 4BD/1BA cape code style home for $69,000 using cash from a HELOC. Property already had tenants in it renting for $850 a month. On day 2 of ownership approached a local bank who does 85/15 LTV with 25 Year amortizing 5/5 ARM loans about getting a mortgage on the property for the BRRR strategy. Didn't put a penny into the property and appraisal came back at $100,000. Could have pulled extra capital out but to ensure I didn't over leverage myself just pulled initial ~$70,000 out.
What made you interested in investing in this type of deal?
Listening to Bigger Pockets for over a year finally took action and couldn't be happier.
How did you find this deal and how did you negotiate it?
Burnt out landlord posted he was trying to sell all 40 rentals he owned on local FB investor group page.
How did you finance this deal?
Cash from a HELOC for initial purchase and then mortgage from local bank to refinance and get cash back
How did you add value to the deal?
Raised rent on current tenants from $850 to $1,000
What was the outcome?
Have a cash flowing rental that I have $0 left in.
Lessons learned? Challenges?
Don't be afraid to act. Create checklists to make sure you have everything you need in each step of the transaction