First BRRRR Completed!

80 Replies

Hi all, 

I have finally completed my first Real Estate deal. I had been saving up and looking for a deal for the past year or so, and this one just kind've fell in my lap as it's two doors down from where I currently live. 

Let's get right into it. Purchase Price was $68,000

Specs: 2bd, 1ba, 864 sq. Ranch, basement/garage, large back yard. 

Down Payment: 13,600

Closing Costs: 2,700

Rehab Costs: 26,000

Holding Costs: 4,800

Luckily, my aunt lived next door and closed on the sale of her house at 118,000 a few days after I closed on this property, so that was the estimated ARV.

My lender allows for a refinance after 6 months of ownership, and I've had it for 7. 

The appraisal just came in two days ago, and it appraised at $118,500

I will end up getting $38,000 back from my cash-out refi after all lender fees, and cash flow $250/mo on a completely renovated home with (hopefully) little maintenance. Without counting holding costs, I've got $4,300 of my own cash left in the deal, with $23,700 in equity currently in the deal after the refi. 

I'm happy, but never content. First deal definitely isn't a homerun, but singles will do for now. Onto the next one!

Photos in the comments if I figure out how to insert them. 

Fantastic work. Congrats! 

Sounds very good. Which city is  this?

Originally posted by @Matt N. :

Sounds very good. Which city is  this?

Hey Matt, this is Kansas City, KS. 

Great job Kendall, congrats!

Congrats on your first deal! Exciting, isn't it?! I just closed on my first deal end of March, in KCK. Cheers to many more!

Congrats! How did you finance the purchase and renovations? Looking at similar numbers for a potential first investment purchase.

Originally posted by @Chad Quillopo :

Congrats on your first deal! Exciting, isn't it?! I just closed on my first deal end of March, in KCK. Cheers to many more!

Awesome, man! Are you around this area or doing long distance investing? 

Originally posted by @Chris Battaglia :

Congrats! How did you finance the purchase and renovations? Looking at similar numbers for a potential first investment purchase.

I actually used a conventional loan. 20% down with the option to refinance at 6 months. Forgot to mention that the interest rate dropped from 6.125 to 4.5 which is awesome! 

Starting to really explore hard money. There's a lender around here that will lend 70% ARV which could also be 100% of the rehab of it's the right deal.

This post has been removed.

Originally posted by @Kendall Short :
Originally posted by @Chris Battaglia:

Congrats! How did you finance the purchase and renovations? Looking at similar numbers for a potential first investment purchase.

I actually used a conventional loan. 20% down with the option to refinance at 6 months. Forgot to mention that the interest rate dropped from 6.125 to 4.5 which is awesome! 

Starting to really explore hard money. There's a lender around here that will lend 70% ARV which could also be 100% of the rehab of it's the right deal.

Did you pay cash for the rehab costs or work that into the financing? 

Congratulations @Kendall Short ! You took a calculated risk and it paid off big. Good for you for acting on it.

@Kendall Short

Nice job, congrats? But I'm curious why you wouldn't think that was a homerun?

Originally posted by @Chris Battaglia :
Originally posted by @Kendall Short:
Originally posted by @Chris Battaglia:

Congrats! How did you finance the purchase and renovations? Looking at similar numbers for a potential first investment purchase.

I actually used a conventional loan. 20% down with the option to refinance at 6 months. Forgot to mention that the interest rate dropped from 6.125 to 4.5 which is awesome! 

Starting to really explore hard money. There's a lender around here that will lend 70% ARV which could also be 100% of the rehab of it's the right deal.

Did you pay cash for the rehab costs or work that into the financing? 

This was all my cash. Saved up bartending for a year and that funded the down payment, closing, and most of the rehab. 


Originally posted by @Kendall Short :
Originally posted by @Chad Quillopo:

Congrats on your first deal! Exciting, isn't it?! I just closed on my first deal end of March, in KCK. Cheers to many more!

Awesome, man! Are you around this area or doing long distance investing? 

I am out of state. Still trying to build my team and network as I go. It's a little bit of a challenge being 5 hours behind and the whole process has been quite the learning experience! It's addicting, I've caught the itch and want to keep going.

Originally posted by @Matt Pastier :

Congratulations @Kendall Short! You took a calculated risk and it paid off big. Good for you for acting on it.

Thanks, Matt. It was a long time coming. A year or two of listening to all BP and BP money podcasts, reading their books, and watching other REI pages on YT, the right opportunity came along.


Originally posted by @Thomas Weidner :

@Kendall Short looks very nice. How much do you rent it for a month?

$950, could’ve probably squeezed out another $50 or so, but that’s a lesson learned for the next one. 

@CJ M. I’m my biggest critic. There are things that occurred during the process that I could’ve done to lower costs and be more efficient, which would’ve helped me get renters in there earlier. 

It’s definitely a good first deal, and I’m going to take all of the lessons learned into the next one to really create a killer deal. 

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