Updated over 4 years ago on . Most recent reply
Our First Rental - BRRRR
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $160,000
Cash invested: $60,000
4 Bed 2 Bath split entry single fam home with detached 2 car garage
What made you interested in investing in this type of deal?
Was actively searching for our first rental property. Rental rates are good in our area and we like the idea of having some long term investments.
This one is perfect for the BRRRR method and plan to do a cash out refi to roll into our next property
How did you find this deal and how did you negotiate it?
Very familiar with the neighborhood, we saw a dumpster out front and some not so familiar faces and decided to stop and chat. That initial visit turned into a tour of the home and we wrote them an offer the next day. I am a realtor and was able to facilitate the deal. In this situation we needed to prove to the county that the home was worth less than tax value so I walked the home with an appraiser, was able to show how much work needed to be done, provided documentation from my contractor.
How did you finance this deal?
Cash out refi on our primary residence and purchased cash
How did you add value to the deal?
Just knowing the market, being helpful and friendly to the family selling and being able to coordinate the appraisal , title work and provide documentation to the seller and county.
What was the outcome?
This is our 1st and we close tomorrow! Hoping for a great outcome. We made sure the numbers work even in the worst case scenario, i am confident this will be a successful investment.
Lessons learned? Challenges?
Siding has gotten SO expensive. Trying to determine what the best materials are for a rental property. Wanting it to look nice but keeping everything in perspective that I will not be the one living in the home and shouldn't dump too much into it :)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Russ Lis - Association Reconstruction (Roofing, Siding WONDERFUL contractor)
Tom Robison - Insight Loans (Cash out refi)
Nancy Lenzen - Trademark Title
-All exceptional professionals who I have used for myself and my clients!