My first investment property!

19 Replies

It's taken almost a year but this Friday I finally close on my first investment property in Tempe, AZ! I'll be using the BRRRR method as I look to take 6-8 weeks to rehab the entire home on my own. I've been gearing up to hit the ground running and simply can't wait! Obviously I have a budget but working in commercial construction and utilizing craigslist I'm hoping to come significantly under budget with hook ups from subcontractors or good deals so I can apply funds to additional scope. Once rehab is complete I'll get out of my current loan and refi the total asset (initial purchase plus all capital invested). I'll have instant equity and will begin my search for a new distressed primary property. Wish me luck and I'll keep you posted on progress.

This property is located in Kiwanis park neighborhood. My primary home is 400y away which is very convenient. I renovated my primary home in 2010 myself and basically did a BRRRR before I ever knew what that strategy was, I moved in and had roommates tho.

Pretty excited.

@Kenny Dahill

Congratulations! You have demonstrated your ability to take action coupled with the fact that you have a plan that's ready for implementation, but, simply waiting for the ink to dry on the signatures this Friday.

The BP community is extremely happy to celebrate this accomplishment with you. Keep us posted as promised and we wish you lots of success in your future REI endeavors.

Originally posted by @Kenny Dahill :
It's taken almost a year but this Friday I finally close on my first investment property in Tempe, AZ!

I'll be using the BRRRR method as I look to take 6-8 weeks to rehab the entire home on my own. I've been gearing up to hit the ground running and simply can't wait!

Obviously I have a budget but working in commercial construction and utilizing craigslist I'm hoping to come significantly under budget with hook ups from subcontractors or good deals so I can apply funds to additional scope.

Once rehab is complete I'll get out of my current loan and refi the total asset (initial purchase plus all capital invested). I'll have instant equity and will begin my search for a new distressed primary property.

Wish me luck and I'll keep you posted on progress.

 Post followed, take before and after pics!  Good luck and congrats on getting in the game.

Originally posted by @Kenny Dahill :
It's taken almost a year but this Friday I finally close on my first investment property in Tempe, AZ!

I'll be using the BRRRR method as I look to take 6-8 weeks to rehab the entire home on my own. I've been gearing up to hit the ground running and simply can't wait!

Obviously I have a budget but working in commercial construction and utilizing craigslist I'm hoping to come significantly under budget with hook ups from subcontractors or good deals so I can apply funds to additional scope.

Once rehab is complete I'll get out of my current loan and refi the total asset (initial purchase plus all capital invested). I'll have instant equity and will begin my search for a new distressed primary property.

Wish me luck and I'll keep you posted on progress.

 Best of luck - looking forward to seeing updates!

Do A diary of your costs and your progress for BP.  

BP loves to follow a renovation and since you are doing  most of the work yourself this will be reallly interesting.  Post your purchases and costs  from your Craig list finds and your Big Box stores.

Tell us about the scope of your work so we can follow you along

Good luck.  This is only the beginning of a wonerful Real Estate adventure

Thank you for all the 'good lucks'!  I will definitely post photos!  For my budget/cost tracking, I am already tracking actual and projections and am glad to share that information.  The good news: I'm already $860 under budget from an amazing Craigslist purchase of cabinets w/ sink/faucet/microwave!  The bad news:  my girlfriend wasn't happy about the last minute addition of an entire kitchen being stored in our pool table room.

The address is 5362 S. El Camino Dr., Tempe AZ 85282.  Purchase: $175K.  Rehab: $15K, 6-8wks.

Conceptual:  This house 1200sf house won't have any add-on's or wall knockdowns.  However, the main objective is making the ktichen space feel larger.  The highlights will be installing an island with a long counter top to create a bar.  Dark floors and lighter walls/kitchen will hopefully make it feel brigher and larger inside.  Bedrooms are basic; carpet/fans/wood closet doors.  Rehab: $15K.  Schedule: 6-8 Weeks DIY Purchase: $175K Appraisal Goal: $215K  Refi Goal: $195K  Rent: $1,400-1,500

Demo:  The kitchen is 95% demo'd!  All that remains is the lights and soffit, which will hopefully be removed this weekend.  The floor tile was the EASIEST I've ever done!  Literally took 40 mins for the entire kitchen/dining, I could peel up an entire row across at once, drop it and every tile woudl break apart - with a 90%+ resalvage!  Popcorn ceilings are now all removed.  This week's goal is carpet/pad removal and hopefully start

Color Scheme:  Nothing is final yet, but here is my early design.  White cabinets, gray field paint walls, charcoal island, and blue accent walls.  It is a rental so I'll probably only use blue in the bathrooms.

Cost: 

Here is a current cost report.  Everything is being itemized based on the line item number show on the far left.  I have already saved on certain items (cabinets/microwave) or decided not to proceed with the scope (doors/solid surface counters).  Once I take money away from a scope it'll show in the 'reallocated' column and then drop down to 'Deleted Scope Savings'.  I should note that all my costs are DIY labor, although I should add a line item for 'beer & pizza' since my friends want to help...

Hope you enjoy this update!  I'll keep them coming.

Hey guys, for those of you who are still following my updates just wanted to provided a short one. 

I finished!  Property turned out beautiful.  I also came under budget by about $1K but went over schedule by a month.  My actual construction days were pretty accurate but I didn't include any personal days.  It took me 95 days and I missed 30-35...yikes.

I already got a lease signed, did an open house immediately and had a couple of applications.  They move in 12/5!

Now I'm having to work through my refi.  This is turning into a mess because I was informed since I've owned the property for less than a year I can only refi the initial loan amount, and not based on the appraisal.  Due to this I'm unable to pull out as much cash as I initially had hoped, but the silver lining is it lowers my mortgage! 

Rent is $1,400 and mortgage (taxes/ins. inc.) is approx. $975.

Congrats!  Pics look really beautiful.  I'd be happy to live there:) Very impressive that you can do so much of the work yourself.  You're at a great advantage!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you