My step by step BRRRR

[Lesley Resnick]

I am going to document my current BRRRR project in Jacksonville, Fl.

It is 3/1 and 1100 sq ft detached garage 

I bought the house on Thursday for 36k.  See pics below.

My goal is have it apprise for 75k and refi LTV of 75% = 56k budget. I may not be able to get all my money, but it will be close.

I spoke to a lender a while ago that said, if it was a cash purchase and a major reno, there would be no seasoning.

Rent 800.  It will go under property management 

It needs:

A/C  - Hot-water heater

Kitchen

Appliances

Floor

PAINT - the current colors are amazing. 

Bathroom  It is in good shape, but there is a soft spot, that may be an indication of a bigger issue

Roof is new 

I only want to spend 20k on the reno, I can find low cost materials.  The labor may do me in.

I did not take a photo of the front of the house.  I will add it to the next post.

Previous owner started the trash out without using a dumpster

Notice the closet, ceiling and wall are all B L U E !!

In defense of the prior painter, the University of Florida's colors are....

Needs paint, but looks pretty good.  A brown bathroom is never a good idea.

Upper right corner is the soft spot.

Living room 

Master

Kitchen countertop matches the backsplash 

So, the city cited me for the trash, I have 15 days to clean it up.  I have a dumpster arriving on Monday and some kid labor to clean it.

[Greg K.]

Thanks for sharing! I'm on the hunt for my first BRRRR deal, preferably in the Tampa Bay area!

[Arya Jackson]

Awesome!!

[Dale Byram]

@Lesley Resnick so glad you are documenting this. Excited to see where it goes.

[Evan Brookman]

Thanks for sharing! Learning BRRRR now and all the information are so helpful!

[Lesley Resnick]

Thanks everyone.  I need to make some time to update more of the process.  I will ty to get to it next week.

[Bernadette Ohms]

@Lesley Resnick thank you for sharing your process. I’m a newbie as well, hoping to invest in Jacksonville (my hometown) in the near future. I hope I can reach out to you when I’m ready. Thanks again

[Austin M Margarida]

Hey, you mentioned a 91 day seasoning- was this the delayed finance w/ cash?

[Ahmed Sublaban]

@Lesley Resnick

Thanks for the great tips and I’m excited for your updates!

I did hear from a few flippers in my city that the workers from Lowe’s/Home Depot would pick any materials whether it looked good/bad/chipped/cracked. It is a a huge time saver, but be sure to let the contractors know that any material that looks damaged be put to the side so you can return/exchange it.

They’ve had lazy and terrible contractors rehab with broken materials.

Just a quick tip!

Good Luck

[Lesley Resnick]

Originally posted by @Bernadette Ohms:

@Lesley Resnick thank you for sharing your process. I’m a newbie as well, hoping to invest in Jacksonville (my hometown) in the near future. I hope I can reach out to you when I’m ready. Thanks again

Sounds good.  Feel free to reach out.

[Lesley Resnick]

Originally posted by @Austin M Margarida:

Hey, you mentioned a 91 day seasoning- was this the delayed finance w/ cash?

It was a cash purchase and was able to cash out after 90 days.  IT IS EXPENSIVE, but can be worth it.  Shop the loan, there are so many different programs.  Some will offer 90 days seasoning ,but require 5 years minimum commitment. 

[Clark Harris]

Congrats! I would definitely be willing to hear your progress and updates.

[Alan Hyland]

Great thread. Thanks for documenting everything and sharing on the forums. I'm hoping to buy my 1st property in the Jacksonville area using BRRRR and reading this certainly gave a good insight into how it will go (but unlikely as smooth!!). Nice job making some big calls like adding the extra bathroom and still getting all your money back out.

[Lesley Resnick]

Originally posted by @Alan Hyland:

Great thread. Thanks for documenting everything and sharing on the forums. I'm hoping to buy my 1st property in the Jacksonville area using BRRRR and reading this certainly gave a good insight into how it will go (but unlikely as smooth!!). Nice job making some big calls like adding the extra bathroom and still getting all your money back out.

Update: THERE IS NO UPDATE: lol

The property is rented and under management and there has been NO DRAMA. I hope I did not JINX myself!

I took a lot of money out of the property and pay management and still collect a few bucks.  It worked as perfectly.

I wonder if I had gone for a lesser rehab, would I have gotten the same appraisal?  That is always a tough question.  I can not second guess myself.