How we found it
Identified off-market as a distressed single-family home below market value due to significant deferred maintenance: overgrown landscaping, structural and cosmetic issues, pest and water ingress problems, and outdated electrical. Purchased at a meaningful discount to ARV, presenting a clear BRRRR opportunity with strong forced appreciation potential.
Acquisition
Purchased in June 2024 using a bridge loan that supported the acquisition and renovation phase before a permanent refinance. The bridge structure allowed us to move quickly on the deal and fund the full renovation scope without depleting capital reserves.
Renovation
Executed a comprehensive renovation covering all major exterior and interior systems: landscaping, pest treatment, plumbing rerouting, electrical hazard remediation, concrete resurfacing, full interior repaint, flooring, fixtures, and appliances. Property was brought to HUD Housing Quality Standards to qualify for Section 8 tenancy.
Performance
Refinanced into a DSCR loan following stabilization, creating approximately $75,000 in equity as a direct result of forced appreciation through renovation. Now leased to a Section 8 tenant with government-guaranteed rent payments delivering stable monthly cash flow with minimal vacancy risk.
After — exterior & interior
Before — acquisition condition
Exterior improvements
- Replaced and repainted all window sills and exterior trim
- Straightened front porch support beams
- New raised metal house numbers
- New automatic porch light installed
- Ring video doorbell installed
- Removed overhanging window covers
- Replaced multiple broken window panes
- Sealed all wall cracks, pest and water ingress points
- Fixed electrical hazards — multiple exposed wiring points rewired to code
- Rerouted shed plumbing to eliminate tripping hazard
- Removed 2 hazardous trees growing near foundation
- Full perimeter landscaping and lawn restoration with new grass seed
- Wasp and termite treatment
- Screened-in front porch; concrete slab resurfaced
- New garden beds on both sides of the house
- New walkways added to front and side of property
- Landscaping rock laid around shed, side, and front
- Outdoor paver seating area installed
- New smart security cameras and solar driveway lights
- New flooring in shed (laundry area)
- Full pressure wash of driveway, steps, patio, and all exterior walls
Interior improvements
- Replaced all window trim and sills; sealed ingress points at all windows
- Fresh paint throughout — walls, ceilings, moldings, and all trim
- Laminate flooring maintenance and realignment
- All outlets upgraded to GFCI with new covers
- New blinds on all windows
- New oven installed
- New washing machine installed
- New ceiling light fixtures in every room
- New wardrobe installed in third bedroom
- New floor transition piece at living room / kitchen threshold
- New floor transition piece at back door entryway
- All door handles replaced throughout
- New front and back door handles and deadbolts
Key takeaway
This deal is the clearest demonstration of our BRRRR strategy working as intended. A distressed SFH, acquired below value, renovated comprehensively, stabilized with a government-backed tenant, and refinanced to recover invested capital.