First Joint Venture BRRRR

[Kristopher Kyzar]

Investment Info:

Single-family residence buy & hold investment in Norfolk.

Purchase price: $60,000

Contributors:
Jonathan New

Purchased and rehabbed as a joint venture. Currently rented to Section 8 tenant. Refinanced in December. This is a perfect BRRRR with all 4 Rs. We're rolling the cash out from the refinance into another property.

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

The property had the right price for the area, and was ripe for a BRRRR deal.

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

Joint Venture partner brought the deal to me. All negotiation was done by him.

How did you finance this deal?

Hard money with some cash down. Actually took out a personal loan for the down payment.

How did you add value to the deal?

Upgraded kitchen, stainless appliances, granite counertops, new flooring.

What was the outcome?

Rented to Section 8 tenant after the rehab. Refinanced 4 months after purchase to pull all initial cash back out. Appraisal came back $15k higher than anticipated, so we were able to pull extra cash out, and still cash flow nicely.

Lessons learned? Challenges?

Section 8 inspection takes a while.

[Patti Robertson]

You got a great deal!  They are few and far between in Norfolk these days.  Have you joined the Hampton Roads Landlord Association? We have a lunch and learn scheduled for next Wednesday if  you can make it.  Free club - you just buy your lunch.   How many beds and baths and how much rent are you getting BTW?