After Countless Hours Listening/Reading - 1st BRRRR Home Bought

[Brian Eilering]

I'm posting in RE Success Stories but I really only have the first part done.

Like many others around here, I had a hard time choosing what path of RE investing to go down. I ended up choosing the BRRRR strategy.

My next problem was location.  The area I live in Atlanta is HOT.  There are no 2% deals here in Metro Atlanta.  Hell, you'd be lucky to find a 1% deal.  Most homes rent for less than 1% of purchase price in our market.

As Brandon and Josh constantly say on the podcast, if you drive a couple hours from your home city, you will find a good opportunity.

We then focussed on some surrounding areas only to be less than excited about what we found and the prices remained higher than we were willing to pay.

As I started to slow the search down, we found an emerging market about 3 hours from our house...Augusta, Ga.  This little city is ready to grow.  Job growth is there along with city planning willing and able to accommodate the upcoming expansion.

Like other cities, Augusta has some good and bad areas.  We were lucky enough to find an older home in need of some work listed for $80K in one of the good areas.  We offered $57K and with a counter of $60K, we gladly accepted their terms.

The home, without repairs and before closing, appraised for $75K.  I already have $15K in equity without swinging a hammer!  After repairs, I anticipate the home to appraise in the $120-$140 range.

Here is the kicker, the home actually has a secondary home on the property we call the cottage.  We plan on turning the cottage into an Airbnb hoping to hit a HR during Masters Week in Augusta while having a permanent tenant in the main house.  I should be able to get 2% on the main house allowing the cottage to just be icing on the cake.  There are hospitals, an army base, a university, amongst other things helping support the Airbnb theory.

There is some work to be done on the home.  I know finding contractors can be a task.  Any suggestions on finding contractors would be great!  

I really appreciate the podcast and countless articles/blogs/forums on the site. Without all of the great ideas, I would be nowhere closer to passive income and financial freedom! My wife and are quite excited and just about ready to start shopping for investment home #2 and rounding out the last R in the BRRRR strategy!

Thanks again

[John Leavelle]

Howdy @Brian Eilering

Congrats on your progress.

First, let me answer your question about tagging people with the "@" symbol.  Type the @ then immediately type the first four letters of their first name (no spaces).  A list of people (with their picture) will appear near the top left of your current post.  Just scroll over the name you want and left click on it.  Bingo!  That person is now tagged in your text.

As far as the Refi Lender goes I strongly recommend you get pre-qualified for the Refi loan prior to purchasing the property.  Obviously, that will not work for you in this deal.  The reason is I want to have a good idea what my rate and terms are going to be in order to better analyze my projected Cash Flow with the new loan.  It also makes the whole process less stressful.  That being said I like using small local banks and credit unions for the Refi.  But, shop around for the best deals.  Even some larger lenders may provide what you need.