Investment Info:

Single-family residence buy & hold investment in Oklahoma City.

Purchase price: $65,000
Cash invested: $115,000

Contributors:
Zac Celli

This was my first BRRRR investement under Flagpole Properties. It was purchased at the beginning of 2020 and the renovation took 2 months. As we began to start advertising the home, it got broken into... twice! After repairing the damage, we were fortunate to find a great tenant that moved in within a month of the completed rehab. However, soon after that, the outbreak of COVID-19 began to spread. The family staying at the property had to break the lease and move due to their job being affected. The property was vacant for another month before it was filled again. On top of that, the sewer lines started backing up, the tree fell and broke the fence, the wall started leaking, the hot water pressure malfunctioned after the water heater was replaced, and last but not least, we had a scorpion intrusion... All and all it was an educational experience and it created the foundation for our business. Not to mention the property ended up appraising over our projected value and we were able to pull out all of our cash invested and then some!

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

This was a Veteran Affairs (VA) owned deal. It was listed on the MLS and we had our contractor and realtor walk thre property. We offered $10,000 over asking because we knew it would be a good deal.

How did you finance this deal?

We used private investment money to finance the project.

What was the outcome?

We refinanced the property after 6 months and pulled out all cash invested and walked away with $12,000 in cash. We are also holding the property and generating monthly income. It was a perfect BRRRR.