Finishing up my first BRRRR project!
Hey Everyone!
I am finishing up my first BRRRR project right now and wanted to share some of my project with everyone.
I purchased my first property in January of this year from a wholesaler for 72,000 (private loan for 15 yrs 0% interest! ) . It is a 3 bed/1bath home in Lexington Kentucky and I was expecting it to need about 8k in repairs and was hoping for it to appraise at around 100k when complete. I also have lived in the home since the purchase and during the repairs (NEVER AGAIN!!)
Good stuff about the house: The house had a new roof and newer windows installed not too long before my purchase and had a kitchen remodel that was started but never completed (new but unfinished cabinets, countertops, plumbing were complete).
Bad ::: The house had an extremely heavy smoker living in it prior to me (previous owner died of lung cancer and I could see why) tar was dripping down the walls and trim throughout the house. Dogs had destroyed the carpet and badly damaged the hardwood under the carpet to the point that I covered it with vinyl plank. Kitchen needed the entire sub-floor removed/leveled/replaced. Bathroom shower needed to be tiled. New electrical, installed central air/new furnace. Other than that it was just cosmetic (Paint, new flooring, trim)
I finally got everything finished up after a break of a couple months due to being too busy at work to focus on anything else.
Since purchasing the house the real estate market has really taken off in my neighborhood with many houses like mine selling from 115-125k! My appraisal just came in at 120k which is about 20k higher than I was expecting when I first bought the home and right where I thought it would come in after seeing what the other recent comps were. I ended up putting a little over 10k into the repairs, so I have about 82-83k in the house total and looking at a profit of around $38k!
Ended up doing a HELOC instead of a refinance since I only have to pay interest on what I am borrowing and there were no closing costs. Not sure if this was the best idea but I liked the flexibility of the HELOC. Feedback?
Also, I am planning on continuing to live in the house until I find my next project and compete it, maybe I will move into that one or maybe i'll stay here? I now have a line of credit of $96k and am trying to decide my next step. Should I buy another single family and BRRRR it too? What would you do? I have also considered selling while the market is hot but am concerned with the tax hit and don't know if it's worth it right now).
I would love some feedback, sorry for the poorly written post!