BRRRR Investing in Roanoke
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $99,000
Cash invested: $10,000
BRRRR. 2/1 into 4/2. Refi'd out at 99k with only 10k left in the deal.
What made you interested in investing in this type of deal?
BRRRR Trial in new investment area. I wanted to see what the market held before investing more in the area.
How did you find this deal and how did you negotiate it?
Found it on the MLS and offered 75% of asking price of which they took it without negotiation.
How did you finance this deal?
HELOC of the purchase and then personal money to rehab. Then we refinanced.
How did you add value to the deal?
Finished the basement making it into a 4/2 from a 2/1. Added HVAC and legitimate plumbing. Increased square footage and made it an open floor plan. Added deck and parking to the back of the house.
What was the outcome?
Appraisal at 132k with 110k into it of which we took out 99k.
Lessons learned? Challenges?
Should have offered less for the property. We purposely bought the worst house we could find so we knew exactly what we would be up against if we wanted to do more.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My brother, Kyle Hastings, is a lender whom I worked through. And I had an agent that is a close friend that I would recommend.
Nice start!
@Glenn Hastings Where was the property? Just generally (Northeast, Southwest, etc), not looking for the address. Thanks. And this looks like a pretty good deal.
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Thanks for sharing Glenn, wish you much success with it!
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@Jason Davis it is in the SE area of Roanoke
Thanks very much. I thought it was probably SE. I've looked at several places over that way and just never pulled the trigger on anything.
@Glenn Hastings Congrats! I've been looking at Roanoke recently as well, I have family friends who live in the area and price point is much more manageable than the DC area. I'm currently working on flips but want to get into long-term buy and holds. What made you look into Roanoke?
@Brian Beck I’m currently in the NOVA area not far from you actually. We should link up. I’ve been looking at doing some more flips but want to keep the Buy and Holds so I can eventually get out of my govt job.
I went to Radford University not far from Roanoke. Had some friends that were from there and liked the area, then in my govt life, I had a classmate of mine that was a cop there and was an agent and a property management company. His mom and dad are really good friends of mine and they have been down there for over 40 years. They are agents, own a brokerage, lenders, and appraisers. So I figured I had part of a team In place down there so I should start doing some market research. There were a few things that peaked my interest... growing market, gentrification and jobs. VA Tech just launched a MD program with Carillon Hospitals in Roanoke, Breweries and Coffe Shops started opening up, flippers started coming in, Chick-fil-A, Lowe's and Starbucks all opened up shops and some luxury apartment complexes opened up as well. These are just some of the things I saw.
@Glenn Hastings I have similar goals, utilizing the flips currently to try and build up capital for buy and holds. I actually have a friend on the police force in Roanoke City also. Having a built-in team is nice. I was down there a year or so ago (right before Covid) and was surprised at how much there was there. Not sure if it will be as stable as Northern Virginia but the price point is much more bearable and it looks like it'll cash flow a little easier. Will you be buying more in the area?
@Brian Beck yes absolutely! Taking the refi money and I just put 3 triplexes and a duplex under contract. Cashflow is much easier but property value doesn’t increase much like it does up here. My current tenant is a cop down there. My buddy was one down there who sold me on investing down there.
This was great to read! Nice deal!
I'm in the Washington Metro Area and Roanoke, Va. was one of the places I have looked at to invest out-of-state. I have family there and the prices looked great. Your financing strategy was also something I have looked into trying for myself.
Thanks for the post and good luck in the future!
Rich
@Glenn Hastings Congrats, keep us posted on how you do down there. I'm interested in it as a cash-flowing market, wouldn't really bank on the appreciation there as I would up here, I'm very interested in how you do down there!
@Rich Banks im in the DC area as well. Definitely a great market
@Glenn Hastings, message me if you do anymore in the Roanoke area, we would be glad to price some of the work for you
thanks
Looks like I am a few days late to the party but I am also from NOVA and invest in Roanoke. I'd love to link up with anyone who is interested.
@Scott Welch let’s link up
Does anyone know of any contracting companies that do rehab work in Roanoke Rapids?
@Ernie Gutierrez Roanoke Rapids is in NC. The city of Roanoke where this topic is located is in VA. Sadly I don't know any contractors in Roanoke Rapids.
@Glenn Hastings
That's right.. I was reading to fast. Thanks for letting me know.
@Ernie Gutierrez if you got the the menu and click on ‘Networks’ you can scroll down to contractors and look for contractors that work with investors here on BP. I’m not sure if it’s a pro membership only tool but worth a shot!