My First BRRRR - 4130 Adams Street
Investment Info:
Single-family residence buy & hold investment in Lincoln.
Purchase price: $110,000
Cash invested: $25,000
Project still ongoing. Bought the property from a friend that is a wholesaler. He closed on the property and realized he didn't have time to fix it so he just resold it to me for a little extra. I'm painting the interior, exterior, new roof, lots of yard cleanup, refinishing the wood floors, building out a bedroom and bathroom downstairs, adding egress windows. Once complete, I'll turn it over to property management.
What made you interested in investing in this type of deal?
My long term strategy is buy and hold.
How did you find this deal and how did you negotiate it?
A friend of mine offered me a discount off of what they had on zillow. I didn't negotiate, I initially told him it didn't work for me, then he told me first before they did a price cut. I saw it, knew it was a deal at his new price and put it under contract.
How did you finance this deal?
Local small bank portfolio lender did a 6.5% 1 year line of credit with no payments. They finance 80% of the ARV. I ended up closing for $0 down and got $6,000 toward rehab costs.
How did you add value to the deal?
Adding bedrooms and a bathroom in the basement, fixing the exterior and new paint.
What was the outcome?
Still in progress