All Forum Posts by: Meredith Mihm

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,600

This is our first BRRRR. 4bd, 1ba. New siding and windows. Closed on February 22, and since then, have converted oil boiler to LP, and totally gutted the house. Hoping to spend between 30-40K, but just learned that we will need a new roof... we are doing most of the work ourselves, so we will hopefully come in close to that. We plan to rent it for $1000ish/mo. Nice big rooms, nice lot, should appraise for $100K, probably more.

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

At a purchase price of 15K, there is a lot of room for error. We thought this would be the perfect first investment for us. We are doing most of the work ourselves, so that we can learn how to estimate rehab costs in the future, timelines, etc.

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

On the MLS. We went through the seller's agent, and he accepted our first offer. Asking was 39K, and we offered 15,600.

How did you finance this deal?

We paid cash. We are using savings to pay for the rehab, and will probably need to dip into our HELOC. We were originally planning to cash out refinance, but I like the cash flow that will come from owning it outright, and our debt to income ratio will certainly look better for future deals without a refi on this one...

How did you add value to the deal?

We are doing EVERYTHING all new, including a much larger kitchen and an added bathroom. All new electrical, all new drywall, lighting, the whole deal.

What was the outcome?

TBA

Lessons learned? Challenges?

So far, so good.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,600

This is our first BRRRR. 4bd, 1ba. New siding and windows. Currently converting the (dead) oil boiler to LP so that it will be warm enough to gut the rest of the house. Hoping to spend between 30-40K, then rent for $1000ish/mo. Nice big rooms, nice lot, should appraise for $100K, probably more.

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

The numbers worked

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

Found on MLS, offer to seller's agent (asking was 39K).

How did you finance this deal?

Cash.

How did you add value to the deal?

Value to be added: new boiler, new electrical, inside will be gutted, new insulation, drywall, kitchen, and bathroom.

What was the outcome?

TBA... we plan to be in it for no more than 65K, and it should appraise for 100Kish. How much money we take back out will depend on what it rents for.

Lessons learned? Challenges?

Will let you know...

Okay, we signed the offer today, so now we just have to wait until the seller signs it... this waiting thing is not easy! 

Okay, we made an appointment to sign tomorrow, thanks. I figured texts weren't binding, but I googled, and of course one court case came up, so I wondered if that had created a precedent. 

So we made a verbal offer to the seller's agent, and he sent a  text message back that they accepted the offer. Is this binding in any way? We're getting nervous...

It sounds like I should go to a CPA to go over all of the specifics! 

Okay, thanks-- good to know. I heard something in passing on a podcast that made me unsure. 

Hi guys, First post here! We are first time investors thinking of doing a BRRRR. We are looking at a house just across the state line (we are in MN, and this house is in WI). We would pay cash for this house. My question is, should I buy this house in an LLC in WI for tax purposes? Not asking about liability... are there any disadvantages?