Middle of a "live-in BRRRR" Richmond, Virginia
I'm currently in the middle of what I'm referring to as a "live-in BRRRR" in Richmond, VA. Similar to a live-in flip but instead of flipping after living here I intend to refinance after 6 months and hold as a rental instead of selling. This is my first real estate purchase! It was extremely challenging to make it happen and included my first offer being accepted then canceled halfway through the process due to unforeseen plumbing issues.
Details:
- Description: Rancher 950 sqft (2bd, 1ba - potential for another bd or another ba by converting closed in porch to sqft)
- Location: Near Forest view heights
- Purchase Price: $90,000
- Negotiation: Reverse foreclosure; no negotiation possible
- Funding: Fannie Mae Homestyle Renovation Loan through Prime Lending
- Closing costs: $6,000
- Additional funding: Reno financing through loan $10,000 (HVAC, plumbing, electrical)
- Currently all-in at $106,000 and living in the house as my primary residence
Left to do:
- Determine ARV (150-200k depending on additional renovations)
- Get a better handle on potential rents
- Determine additional repair budget (15-35k) depending on ARV target and potential rents
- Complete, at minimum, a utility room addition, bath and kitchen remodel and porch conversion
Big thanks to @Stephen Glover, @Shera Gregory, and Fixer Upper Coach Pete DeWorken and many others for their advice already in this process. They are all great!
First few things I tackled were the disgusting carpets, cleaning and painting all nicotine stained walls, and landscaping.
If anyone in the area wants to get together and chat, would love to meet more investors or future investors