Lessons learned on my 1st BRRR
Today is a big day for me- my 1st tenant is moving in. Back in April of this year we started down the road of BRRR. Here is a link to the thread: https://www.biggerpockets.com/forums/223/topics/19...
So the numbers:
Buy: 100,000
Rehab: not quite done (fixing third unit) but @50,000
Rent: 2700 total of which we have 1st unit $950, and 2nd unit $900 rented.
Refinance: that will start in October
Repeat: oh yeah, it will be happening
Top line house value: 200,000
So we will be able to refinance out $140,000 approximately. This will be a $10,000 in to acquire a $2700/month top line income asset with approximately a $40,000- $50,000 equity gain.
Lessons:
1) Everything takes longer than you think- just factor that in.
2) Getting your part list down the first time is painful. Make sure you record exactly what parts you like and don't so next time you don't need to spend time deciding.
3) HVAC work will take more time to schedule at the peak turn of the season. Remember this.
4) PEX is wonderful, and ProPex I am a fan of
5) When buying a REO the amount of deferred maintenance should not be underestimated.
6) Sometimes it would cost less to demo out things than repair them- make sure you factor which is more LABOR and material efficient.