Updated over 6 years ago on . Most recent reply
First Attempt at BRRRR
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $185,000
Cash invested: $30,000
First attempt at a BRRRR deal.
What made you interested in investing in this type of deal?
The property sat on the market for a while in our current city. I knew the neighborhood, understood the values, and decided to make an offer based on what would make sense.
How did you find this deal and how did you negotiate it?
MLS listing. I noticed the owner was out of state. The asking price dropped from 229,000 to 210,000. We put it under contract for $185,000
How did you finance this deal?
Traditional 30 year mortgage through a local credit union.
How did you add value to the deal?
Painted interior, new kitchen appliances, new fixtures, upgraded all 3 bathrooms, and cleaned up the front landscaping.
What was the outcome?
We rented it out, and just completed a cash out refinance only 6 months in. It appraised for $235,000 and we were able to pull out 20k of the original 30k we invested.
Lessons learned? Challenges?
It's expensive to purchase with a traditional mortgage and then refi with a traditional mortgage. We still cashed out 20k, but probably spent 5k in closing costs...twice!
