After a ton of mistakes, it still BRRRRs
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $50,000
Cash invested: $40,000
Originally bought for a flip. However, a Property manager suggested a 4th bedroom and shared with us the rent increase which made it a BRRRR. Total gut rehab and had some contractor challenges at the beginning. Added a 4th bedroom and that significantly increased our rents. Went 3 months over schedule, had a contractor ghost us, regroup and go 30% over budget and yet it still cash flows. Able to refi and pull out 100% of my funds to repeat. ARV is $145k right now and rents for $1250-1350/mo.
What made you interested in investing in this type of deal?
This was a 3 bed 2 full bath with 40% more square footage than other 3/1.5 and 3/2 comparables. Saw the opportunity to add a 4th bedroom and still have a lot of living space.
How did you find this deal and how did you negotiate it?
This was on MLS investor owned.
How did you finance this deal?
Used a HELOC/Cash
How did you add value to the deal?
Full gut rehab.
Lessons learned? Challenges?
Bad contractors will double your timeline and cheapest cost most.
