Updated over 4 years ago on . Most recent reply
Raising a Foundation in a Tacoma, WA BRRRR Property
Investment Info:
Single-family residence private money loan investment.
Purchase price: $195,000
Cash invested: $40,000
3 Bed/1 Bath 970 sqft in Tacoma, WA with large fenced lot.
What made you interested in investing in this type of deal?
Was looking for an affordable BRRRR with a partner. Tacoma market was on the rise and rental comps supported the purchase.
How did you find this deal and how did you negotiate it?
MLS. We originally lost to another offer but asked to be a back up. First offer fell through due to foundation issues and they came back to us. We asked for a discount at that point.
How did you finance this deal?
Was originally going to be hard money but my partner found a private money loan last second.
How did you add value to the deal?
House had a sinking foundation. Sellers lowered $50k from market value and sold as is. We fixed foundation and renovated kitchen for less than $40k.
What was the outcome?
Refinanced into conventional loan to pay off private money after only 2 months (appraised for $270k). Cash flows $500/month. Now thinking about building a multi unit DADU or splitting lot for new construction.
Lessons learned? Challenges?
Better understanding of how 1920 homes were built. Realized how I like contractor bids to be lined out so I’m not blind sided about items “not included in scope of work.”
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My agent, Cameron Jurgensen. Understands REI in the greater Tacoma area.