My First BRRRR

My First BRRRR

Investor · Sioux Falls, SD · Member since 2016 · 102 posts · 113 votes

Bigger Pockets has been instrumental in helping me get my REI business off the ground. I would have never been able to complete this transaction without the help of the BP community. The seller of this house found me through a cash offer advertisement I had posted on craigslist. I was super scared to buy it after the inspection and I almost let the deal walk. I'll never forget pulling up the carpet and watching bugs and worms scatter! Thankfully I had some great colleagues in my network that encouraged me to move forward.

Before

After

Here are some quick numbers:

Purchase Price: $10,000 (negotiated down from $15,000 asking)

Rehab: $35,000

ARV: $75,000

Rent: $880/mo

Closing/Holding Costs: $2500

Projected monthly cashflow (unleveraged): $500/mo for a 12.5% cash return

If all goes to plan, I'll be able to refi after my 6 month seasoning and get all my money back and still cashflow about $266/mo.

I'm happy to share more details if anyone is interested.  

I'm so grateful for this community!!!  THANK YOU!

45Reply
137 views

Most Popular Reply

Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y

WHAT is that third picture with the green and yellow circles?!? @Chris Pohlson

See this reply in the discussion

93 Replies

Jump to latestLatest
  • Investor · Metuchen, NJ · Member since 2016 · 8 posts · 1 vote
    9y

    Congrats & great job.

  • Jeremy HartPro Member
    Residential Real Estate Broker · Blacksburg, VA · Member since 2016 · 155 posts · 67 votes
    9y

    This is fantastic, thanks for sharing these!

  • Jose RubioPro Member
    Investor · Groveland, FL · Member since 2013 · 38 posts · 6 votes
    9y

    You did a great job, and your numbers worked very well, especially considering it was your first project.

  • Real Estate Broker · Syracuse, NY · Member since 2016 · 39 posts · 26 votes
    9y

    Congratulations! Great job, hope this is the first of many for you.

  • West Des Moines, IA · Member since 2014 · 5 posts · 0 votes
    9y

    You did great. You paid the house all in cash. How do get back all your money when you refinance 6 months down the road? I am new to this and not quite understand the financing..

  • Real Estate Investor · Meridian, ID · Member since 2016 · 3 posts · 0 votes
    9y

    Grats on your first! I'm getting close!

  • Investor · Asheville, NC · Member since 2016 · 13 posts · 8 votes
    9y

    Those are the deals I like.  Nice job, good returns, low carrying costs.  I did a couple years ago and kept getting bigger houses, I thought I was supposed to.  The problem came when I was carrying 3k a month on a house I couldn't sell. Never again.  Slow and steady wins the race.  Congratulations.

     I suppose I am cheap too.  Tell you what.  You go Pro and so will I.

  • Investor · Melrose Park, IL · Member since 2015 · 77 posts · 24 votes
    9y

    What kind of neighborhood is it in? As someone else also asked, how did you figure the ARV? Did the contractor give you a rough estimate BEFORE you purchased it, or do you kind of figure roughly how much $$ it would cost on your own?

    Great job.  It looks amazing compared to the way it looked before.

  • Miami, FL · Member since 2016 · 2 posts · 1 vote
    9y
    Congratulations! Can you provide a more detailed breakdown of how you financed and leveraged your deal? What % did you put down, borrow, etc? Thanks
  • Investor · Houston, TX · Member since 2016 · 8 posts · 2 votes
    9y

    The house looks great! Congratulations

  • Real Estate Agent · Burlington, NJ · Member since 2016 · 6 posts · 0 votes
    9y

    Congratulations! You are inspiring me to get going with my first fix up! 🎉

  • Houston, TX · Member since 2016 · 58 posts · 18 votes
    9y

    Great Work Chris! Thanks for sharing. These kind of posts boost newbie flippers

  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y
    Originally posted by @Mindy Jensen:

    WHAT is that third picture with the green and yellow circles?!? @Chris Pohlson

     LOL. The house is so old people don't even know what an old fuse box with fuses looks like anymore. What year was it built? 

  • Investor · Sioux Falls, SD · Member since 2015 · 20 posts · 6 votes
    9y

    @Chris Pohlson  Wow! It looks fantastic. I was excited to see the pictures and then seeing you are from Sioux Falls just added to it! Nice work. Great to see there are some local investors on here. I would love to hear which contractor you used, they are hard to come by from my experience so far.

  • Investor · Sioux Falls, SD · Member since 2016 · 102 posts · 113 votes
    9y

    @Tiffany S.  Thanks!  I had my realtor give me an off the cuff BPO.  

  • Bowling Green, KY · Member since 2016 · 3 posts · 0 votes
    9y

    At my last post I forgot to take you @Chris Pohlson

  • Bowling Green, KY · Member since 2016 · 3 posts · 0 votes
    9y

    Thank you for your quick response, and for sharing @Chris Pohlson

  • Real Estate Agent · Boise, ID · Member since 2016 · 9 posts · 1 vote
    9y

    Awesome!  Congrats!  It looks like that will be a great deal for you to cashflow and get your money back out of the deal to purchase another one!

  • Investor · San Francisco, CA · Member since 2015 · 14 posts · 8 votes
    9y

    Congratulations, @Chris Pohlson, super nice job!

  • Real Estate Agent · Irvine, CA · Member since 2016 · 224 posts · 142 votes
    9y

    Congrats! Keep it up!

  • Buhl, ID · Member since 2016 · 6 posts · 3 votes
    9y

    Very nice Chris and getting a contractor/investor was the best choice you ever made I would bet you learned so much I would even suggest this guy as a mentor or a go to for advice great job

  • Investor · Sioux Falls, SD · Member since 2016 · 102 posts · 113 votes
    9y

    @Paul Nguyen A traditional lender that sells my mortgage on the secondary market will make me wait 6 months from the date of purchase before I can do a cash out refi. From what I've gathered, I'll have to settle for 75% LTV. I've put in about $47500. ARV is estimated $75,000. 75% of $75,000 is $56250. Sooo...in theory I should be able to recoup my original investment and still have a cash flowing asset giving me an infinite cash on cash return.

    @Neal Little Asheville is gorgeous this time of year.  Enjoy those trees!  Haha I'm going to go pro soon.  I'll hold you to that.

    @James Bitakis It's not the best or worst neighborhood.  I'm new so take this with a grain of salt...C+ neighborhood?  I had no idea how much it was going to cost to renovate before I bought it.  I just had a network of people telling me to go for it.  The tipping point came when someone said they'd give me a bird dog fee of $250 and THEY would buy it if I didn't.

    @Chris S.  I wish I had a creative financing story but it was all cash.

    @Susan Maneck It was in the 1940's...not sure on the exact year.  

    @Shannon Vanderweide Thanks!  PM and I can give you a name.

  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    9y

    congrats

  • Westbury, NY · Member since 2016 · 13 posts · 5 votes
    9y

    Congrats!

  • West Des Moines, IA · Member since 2014 · 5 posts · 0 votes
    9y

    Chris, Thanks for the response. Who were in your network before the purchase? How did you find a general contractor and was he who suggested you of all the rehab items? Did you have any bidding for the rehab? 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.