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!

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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

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

    Christ, Thanks for the response. Who were in you group before the purchase? How did you find the general contractor and was he who suggested you for all the rehabs? Did you use bidding for the rehab?

  • Real Estate Broker · Fullerton, CA · Member since 2015 · 5 posts · 1 vote
    9y

    Congratulations :) 

  • Phoenix, AZ · Member since 2016 · 10 posts · 2 votes
    9y

    congrats on jumping in and doing a great job! I like the flooring you used.  How did you find your contractor?

  • Savannah, GA · Member since 2016 · 8 posts · 2 votes
    9y
    Congratulations!
  • Cocoa, FL · Member since 2016 · 22 posts · 6 votes
    9y

    @Chris Pohlson I will chime in with everyone else and say great job.  Looks good.  Along with @Toan Nguyen I am interested in knowing how the project was funded.  Did you have cash or did you use a private lender? Thanks for sharing and very encouraging for us newbies.

  • Investor · Arlington, TX · Member since 2016 · 25 posts · 5 votes
    9y
    Congrats you just motivated many people with your success story, especially me! Keep us posted in 6 months when you do your Refi!
  • Real Estate Agent · Mcdonough, GA · Member since 2016 · 17 posts · 4 votes
    9y
    Congratulations and great job!!!
  • Dallas, TX · Member since 2016 · 25 posts · 9 votes
    9y
    Amazing !!! I just listened to the podcast about BRRRR !!! Congrats it looks amazing!
  • Marquette, MI · Member since 2015 · 93 posts · 12 votes
    9y

    I love the ceiling fan off to the side of the light fixture in before pics! Lol! Great job.. awesome/affordable/bold move on flooring- turned out great! 

  • Real Estate Investor · Anchorage, AK · Member since 2015 · 117 posts · 42 votes
    9y

    Nice work @Chris Pohlson!! I hope to do a BRRRR soon myself!

  • Real Estate Investor · Anchorage, AK · Member since 2015 · 117 posts · 42 votes
    9y

    And thanks for sharing your story in such a simple format!!  You are an inspiration to all of us!  Keep it up!

  • Realtor · Farmington, MI · Member since 2016 · 126 posts · 69 votes
    9y

    That is awesome news Chris !

    I join many other newbies and experienced people here in BP who are so happy for you and excited about your first deal. I like you I'm just getting started with REI. Glad I came across BP without spending $10, $1000's of dollars on fly by night Real Estate Gurus offering training and classes on REI.

    When I get discouraged and find REI overwhelming I use the adage "

    "All courses of action are risky, so prudence is not in avoiding danger but calculating risk (BP Calculators) and acting decisively. Make mistakes of ambition and not mistakes of sloth. Develop the strength to do bold things, not the strength to suffer". Niccolo Machavelli, 1496-1527.

    Good Luck in your future endeavors !

    Best Regards

    Kishore. P

  • Dordrecht, Zuid Holland · Member since 2016 · 27 posts · 4 votes
    9y

    Nice work ! Congrats !

  • Investor · Lisbon, Portugal · Member since 2016 · 48 posts · 8 votes
    9y

    Very well done, @Chris Pohlson . Great numbers! That price-to-rent ratio is through the roof!!

    I'm curious about the foundations of the house; did you have any surprise that you didn't take into account in your rehab budget or was that 35K pretty close to your estimation?

    Cheers!

  • Rental Property Investor · Beaumont, TX · Member since 2015 · 161 posts · 77 votes
    9y

    congrats! nicely done!

  • Roswell, GA · Member since 2016 · 1 post · 0 votes
    9y

    Chris, that's awesome job!! Renovated property looks great and numbers sound very nice too!! Thanks for sharing and inspiring us to do better job.

  • Baltimore, MD · Member since 2016 · 3 posts · 1 vote
    9y

    congratulations

  • Investor · Philadelphia PA · Member since 2016 · 44 posts · 10 votes
    9y
    Chris Pohlson great job with this deal, I'm inspired.
  • Scotch Plains, NJ · Member since 2015 · 89 posts · 31 votes
    9y

    @Chris Pohlson

    That was pretty scary but you saw past the bugs, worms and greasy electrical panel. Very inspiring!! Well done!!!

  • Investor · Lowell, IN · Member since 2015 · 12 posts · 0 votes
    9y

    having trouble finding a contractor we can afford in lowell, in that will do a good job.  My husband is doing all the work takes forever, but turns out nice in end.  Need electric done.

  • Friday Harbor, WA · Member since 2016 · 47 posts · 14 votes
    9y

    That is ADORABLE! I love that you kept the vintage charm, like the detail over the sink, but updated it. Never be afraid of a few worms and bugs! (Unless those bugs are termites.)

    Nice job! Boy, I wish there were any deals under six figures in my area...sigh. The hazards of being a new RE investor in a high-cost of living region. :'(

  • Investor · Houston, TX · Member since 2016 · 13 posts · 0 votes
    9y

    great job!!!  Love hearing these stories and the various details.  Gives a comfort level to the beginners as well as those of us a little further down our journey.   Keep up the good work and I look forward to see more success stories.

  • West Palm Beach, FL · Member since 2016 · 9 posts · 1 vote
    9y
    Great investment!
  • Investor · Portsmouth, VA · Member since 2016 · 289 posts · 107 votes
    9y

    @Chris Pohlson How much work was it to remove it? DId you hang up drywall after? Im asking because I am interested in this house but like 3 rooms are paneled. A lot of ppl say it can just be painted over and removing it is not worth the hassle in some cases.

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

    Thanks for the good vibes!  I'm glad this is helpful/inspiring.

    @Account Closed I would have just painted over it if it would have been salvageable.  The walls were plaster underneath it so it was a little work to remove everything.  We ripped to the studs and hung new drywall throughout.  For the most part, I like the look of painted paneling.  We would have done that if it would have been an option.

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