First rental BRR(RR) before and afters

[Brian Ellis]

My first rental BRR(RR). All credit is due to what ive learned here, from you guys! I fixed up a distressed 3br 2ba last year, took out a HELOC and used 90% of it on the downpayment for this duplex, and the rest to help with renovation costs. One unit was already renovated, so I only had one apartment to fix up. This was a piece of cake in comparison to the single family.

Purchase Price: $242500

Rehab Costs: $6075

Estimated ARV: $290000-$295000

I plan to refinance, pay off a good chunk of the HELOC, and repeat in a few months.

COC: 12%

Cashflow (after all expenses, including HELOC payment): $492

I still have a lot of work to do, in terms of running a successful rental. But im excited for my future adventures.

[Nathan Gesner]

Congratulations! It looks much better and you managed to keep the costs low. Now comes the hard part: managing tenants!

[Nathan Gesner]

Congratulations! It looks much better and you managed to keep the costs low. Now comes the hard part: managing tenants!

[Brian Ellis]

@Nathan Gesner that will be the true test!!

[Kevin Giles]

wow ! Amazing transformation. Where is this house located ? 

[Brian Ellis]

And I want to say thanks to @JD Martin for guiding me through the process of negotiating the price, and helping me be confident in the numbers. 

[Dawn P.]

Were those hardwood floors already under that nasty carpet? Nice. Looks really good, hope you find a great tenant!

[Brian Ellis]

@Dawn P. Thank you! Yes I just buffed them up and put a couple new coats of poly on top. 

[Brian Ellis]

@Kevin Giles Wareham, MA

[Scott Morongell]

@Brian Ellis congrats, renovations look great. 

[Kizzy Robb]

@Brian Ellis - This is exciting and inspiring! I am excited about my first BRRRR. Keep up the great work.

[Brian Ellis]

Thank you @Scott Morongell and @Kizzy Robb

[Logan Brown]

@Brian Ellis, Nice work! That looks significantly better. Did you take care of your own repairs? Where did you purchase? That looks similar to our purchase prices for northern Colorado. How did you decide on this particular property? Cheers!

[Brian Ellis]

@Logan Brown Thank you. I subbed out the Painting, HVAC and electrical wiring for the laundry and furnace to my friends in the trades (helped out too). Everything else I did myself. I bought in wareham, ma. 

I only had a certain amount of money to invest from the HELOC (75k), so my purchase price had to be under 250k with a 25% down payment. It was listed at 260k and I got it under contract after a couple weeks of negotiating for $242500. This left me enough for the closing costs, as well as some for reserves. Surprisingly a duplex popped up in a mostly single family neighborhood. I think that's where I lucked out, people may have just assumed it was a single family home, it was also being sold through the court system as-is (joint ownership, one owner passed away).

[JD Martin]

Originally posted by @Brian Ellis:

And I want to say thanks to @JD Martin for guiding me through the process of negotiating the price, and helping me be confident in the numbers. 

 Thanks Brian! You did a helluva job on that place and nice cash flow besides~!

[Andrew Syrios]

Looks very good, great work!

[Brian Ellis]

Thank you @Andrew Syrios

[Account Closed]

Awesome Brian!

[Brian Ellis]

Thank you @Account Closed I notice you are interested in the North Shore. I don't have any experience up there, but I wish you the best of luck, I know the competition is tough!

[Sebastian Kressley]

Nicely done @Brian Ellis - way to stay positive throughout the whole experience. Wish you nothing but the best on the next one!

[Brian Ellis]

Thank you @Sebastian Kressley likewise!

[Anthony Wick]

Wow! $6k rehab costs? I would have guessed double that. Great job!

[Brian Ellis]

@Anthony Wick thank you! I’m pretty frugal and did a lot of the work myself, subbed out the stuff to frIends that I thought would make the biggest impact like paint. But still helped to keep the costs down.