Updated over 5 years ago on . Most recent reply
BRRRR in Huntsville / Decatur
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $55,000
Cash invested: $36,000
3/2 1,600+ sqft SFH. Off market deal. Required an extensive remodel.
What made you interested in investing in this type of deal?
Just completed another renovation in the immediate area so i was familiar with the location and was confident in the ARV. I liked the size of the property as well as the appearance of an "easy" rehab, which i learned throughout, is truly not the case.
How did you find this deal and how did you negotiate it?
The same wholesaler that offered me my previous project. Because I just completed another deal with the wholesaler, he gave me is bottom line up front without a significant padding in price.
How did you finance this deal?
Leverage an existing Business Line of Credit on a previous property as well as capital from the sale of another property.
How did you add value to the deal?
Installed HVAC when there wasn't one previously. New windows. LVP flooring throughout except for where there was existing hardwood. Knocked down wall to open kitchen, new cabinets. New Water heater. New vanities in both baths. resurfacing of tubs.
What was the outcome?
Property appraised for just over our anticipated ARV. Property was rented out within 2 weeks of completing rehab. Placed a mortgage at 80% LTV, CoC ROI is 300%, and a 1.4 DCR, to pay off LoC and replenish capital used. Neighbors were truly thankful that we remodeled this home as it was an eye soar before.
Lessons learned? Challenges?
- Patience. In my mind, it seemed like a straightforward job in which could have been completed in 30-45 days. Coordinating with subs to ensure new hvac, windows, plumbing etc was done accordingly does require time and effort. Stay on top of your project manager.
- What we are doing positively impacts many lives. The future tenant. But also the neighbors in that community.
- I have a true excitement for resurfacing tubs. Cost effective and the look is great!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Worked with same core 4, thus improving on our efficiencies. I would highly recommend any of the team for your specific needs.
Most Popular Reply
@Samuel Garrett A true excitement for resurfacing tubs? What product/process do you use?