First BRRRR Finalized!!!!
I am happy to say my first BRRRR is officially completed. We purchased a property November 2016, thought was going to take 3 months to renovate, ended up taking a year, got rented right away and then nothing for 7 months.
Then, we put offer in on a rental property for students housing at university. Deal was struck but one problem, had no funds for closing. Great news had property we renovated with over 140k in equity in it. Had our credit unit do a HELOC on the investment property, pulled out 85k then took 21k of it to use for closing cost on new property which settled today. Everything thing worked great and best part of HELOC is we are only paying on cash I need to use at this moment. Now still have 64K left which planning on using to secure 2 to 3 additional properties. After closing today went and toured a home that may be possibility. Amazing that I possibly will be able to use one house to secure 3 or 4 other homes.
Anyone out there still on the fence, BRRR works and is a great way to go. We lucked out that this next rental needs less than 2k in work, already has 2 tenants signed up and was able to secure a 3rd before even settled on property. Heck, not only did I secure a tenant for a 2 year lease, she paid first 6 months rent at once, before I even owned the property. Student rentals with well to do parents are a wonderful thing! Mom even asked if would be okay if she paid every 6 months so that she doesn't have to worry about paying it every month. That will be just fine!
We were able to secure this house for 78k, mortgage with taxes and insurance is going to be $432 and will be bringing in $1125 a month. After expenses we should be cash flowing about $525 a month and have zero of my money in the deal. Oh, and house was on the MLS and got same interest rate I got over a year ago on first property. Deals are out there people, you just need to find them and make it work.
Thank you BiggerPockets for all the wisdom and confidence you have given my wife and I to venture into the world of real estate investing.
