Bowstring-B-cropped-3color-transparent

BRRRR Momentum

The resume hit the point of making a financial difference.
Strategy:
BRRRR

About the Property

brrrr-momentum-huntsvilleAL
  • Property type: Single family home
  • Beds: 4
  • Baths: 2.5
  • Sq. Ft: 1900

About the Deal

Why I liked it

The property was already rented when it came to me (therefore livable), but had enough deferred maintenance that it had huge upside. Plus I had a pretty good comp nearby from a recent property I had just sold as a turnkey.

Deal structure

Hard money loan with the plan to refinance into a non-conventional long-term loan in 3-6 months. Now that the Bowstring resume is built up a bit, lenders start to offer much more favorable terms for having the experience.

Deal outcome

As of November 2021, the property is undergoing rehab. So far it’s going pretty much as planned.

Projected Numbers

Purchase: $110,000
Rehab: $26,000
ARV: $175,000
Rent: $1,600

Actual numbers

Purchase: $110,000
Rehab: $TBD
ARV: $TBD
Rent: $TBD

Deal Outcome

TBD!

Lessons Learned

Bowstring needed a dedicated person to work with lenders. Even some lenders who claim to be a quick, easy close are far from that.

With how we were structured, it was worth paying more for ease of closing. But as we grow, it can be worth going through the pain of more extensive loan packages for better terms (but definitely not always — it depends on the strategy).