Updated over 6 years ago on . Most recent reply
BRRRR Strategy Rental
Investment Info:
Single-family residence buy & hold investment in Rochester.
Purchase price: $41,000
Cash invested: $18,000
Purchased a foreclosure and used the BRRRR strategy. It currently has a tenant in place and cash flowing $220 per month after factoring for 15% for maintenance, CapEx, and vacancy.
What made you interested in investing in this type of deal?
Looking to continue to build my real estate portfolio with cash flowing buy & hold rentals.
How did you find this deal and how did you negotiate it?
Foreclosure.
How did you finance this deal?
Private money then did a cash out refinance.
How did you add value to the deal?
Forced appreciation by rehabbing the entire inside.
What was the outcome?
Purchased for 44k and it appraised for 75k. I was able to get a loan for 80% LTV and pull out the majority of my money back out. I have around 18k of my own money into the deal.
Lessons learned? Challenges?
Working with reliable contractors and I won't market rentals until they are almost 99% done as my contractor wasn't truth about working on the property when I was on vacation and when I got home realized he hadn't been working on the property at all. I ended up putting the tenants in a hotel for a week and half to make it right.