Investment Info:

Single-family residence other investment.

Purchase price: $20,000
Cash invested: $45,000

This was my attempt at a BRRRR. It is a SFH in Dayton, Ohio that needed a full gut job. Unfortunately the house took a lot longer to rehab and ran a bit over budget but the good news is it is supposedly going to get me $1,000/month starting July 1 and the ARV is supposed to be between $70-75,000.

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

I was really interested in doing a legitimate BRRRR just to say I did it. I'm a buy and hold investor and really wanted to see if I could turn this into a free house. Unfortunately it hasn't worked out yet but it is still a good buy and hold assuming my PM has gotten the paperwork on a long-term lease.

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

I found it through a facilitator. It was my first purchase through her and it hasn't worked out as well as advertised. Hopefully things just look up. I didn't do much negotiating to be honest.

How did you add value to the deal?

A full rehab was done and air conditioning was added.

What was the outcome?

The outcome is still TBD. I haven't figured out what my strategy is going to be now that I'm finding it almost impossible to get this refinanced at a decent rate and tolerable fees (I'm Canadian and don't have an SSN or an American credit history). If the tenant wants to do a rent-to-own or I get a decent price from an investor, I'd consider it going either way. If not, it's a buy and hold.

Lessons learned? Challenges?

I learned a few things here:
1) I've found it impossible to find a conventional lender to give me a loan so I could do a cash out refinance. There are alternative lenders galore but the interest rates are close to 9% along with sky-high fees.
2) My single family home rehab amongst the other rehabs my contractor was taking care of didn't seem to be much of a priority. The general contractor told me it would be completed by February and here we are in June and it is just being completed.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm withholding judgement on this one until later.