PURCHASE: $107,000

FINANCING: Private Money Lender at $128,000 ($107,000 + $21,000 rehab budget)

REHAB: $35,000 (Included $21,000 in private money)

ARV: $200,000

STRATEGY: VALUE ADD / DEVELOPMENT (BRRRR)
Converted 3bed, 1bath SFH to 4bed, 2bath and forced appreciation by ~$93k, by addressing deferred maintenance and adding rooms. Full renovation included new kitchen, new bathroom, added additional bedroom and bathroom, interior and exterior paint, and replacement of all original windows.

EXIT STRATEGY: The plan was to hold long term with higher rents due to bedroom and bathroom addition, or flip with a net gain of ~$25,000-35,000. We refinanced, cashed out and paid our private money lender back. We decided to hold for long term appreciation and will 1031 exchange into a bigger asset.