My step by step BRRRR

Real Estate Deal Analysis & Advice

My step by step BRRRR

Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes

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.

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Investor · Tallmadge, OH · Member since 2015 · 258 posts · 275 votes

8y

Congrats, and I’m excited to follow along! Looks like a fun project. Between the paint jobs and the backsplash, I guess you could say the previous owners were not afraid to make bold design decisions...

See this reply in the discussion

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Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Eric B.:

Very very interesting. You are doing an awesome job documenting this so those who have never gone through this process before can see it in real time. It also gives me a few things to look up that I am unfamiliar with to further my education.
Thanks Eric.
That is my goal. I want others to feel confident in taking on a project like this.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Bathrooms!! I almost have 2.
Stand up shower in the new bathroom.
Red Guard coating to seal the dura rock backing. Love the penny tile.
Original bathroom - see before photos above.
1 Reply
Lili Thompson
Investor · Tulsa · Member since 2018 · 46 posts · 18 votes
7y
This is awesome! As a new investor looking at a few BRRRR opportunities in Tulsa, OK, this is a great thread to follow.
Thanks so much!
0 Reply
Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
7y
Looks good, keep up the good work and best of luck getting it finished!
Podcast Guest on Show #121
1 Reply
Raven Washington
Rental Property Investor · Greenville, SC · Member since 2018 · 10 posts · 0 votes
7y
@Lesley Resnick looks great
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Master bath is moving along. Adding a master bath is going to drive the appraisal value. It will help with the rent, but the real value will be in the refi.
By the time I post this, it should be grouted. I am using a dark color that will hopefully last longer
Accent stripe in a master bathroom in 32208?
The bathroom has taken up a chunk of the bedroom, but the renters will appreciate not sharing a bath with the kids!
Look at those plumbs :-) My bathroom from the underside. This house is on a raised foundation. We do not have basements in Florida. Houses in Florida are either on a slab or raised foundation. They each have advantages. Raised foundations are easier to modify plumbing.
Still need floor covering, sink, and toilet to complete the bathroom.
3 Reply
Nathan C.
Investor · Newport Beach, CA · Member since 2017 · 25 posts · 3 votes
7y
Looks great @Lesley Resnick!
After talking to you so many times, it's great to see a project that you're working on right now!
0 Reply
Chris MillerPro Member
Flipper/Rehabber · Hampton, VA · Member since 2013 · 18 posts · 8 votes
7y
Wonderful Job Lesley! The master bath is a good idea in getting that Value up so you can get more on your refi.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Chris Miller:

Wonderful Job Lesley! The master bath is a good idea in getting that Value up so you can get more on your refi.
That is the plan. It is the value-add.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
The outside painting is finished. These are going to be my goto colors going forward.
OOPS! The fan hits the wall!! Need to get a smaller fan.
1 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
The front of the house is an addition, I think it may have been a porch. They used paneling on the inside with no drywall behind it. Today was fixing the wall.
Should I keep the RED door or paint it?
Time is slipping away. Monday is the 10th and the floor guy is coming to refinish the floors he needs 4 days to complete it. I have the other floor guy coming next Friday to fill in the rest of the floor. The house will be done by Monday the 17th and I wanted to close on Friday. I need the appraisal to come through in time. I am going to call them tomorrow to schedule it for the 17th.
0 Reply
Craig MartinPro Member
Member since 2018 · 1 post · 0 votes
7y
This is really neat to see the process, Thanks for sharing! I'm new to reaI estate investing, but the BRRR method is quite intriguing. I'm impressed with the condensed timeline. Have you had any difficulty getting your contractor (contractors?) scheduled and finished on time? I'm curious what sort of relationship you had with the contractor prior and how that affected your rehab budget (when you were doing your napkin calculation!).
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Craig Martin:

This is really neat to see the process, Thanks for sharing! I'm new to reaI estate investing, but the BRRR method is quite intriguing. I'm impressed with the condensed timeline. Have you had any difficulty getting your contractor (contractors?) scheduled and finished on time? I'm curious what sort of relationship you had with the contractor prior and how that affected your rehab budget (when you were doing your napkin calculation!).
As far as the contractors go, I have an advantage. I send them 3 houses a month to reno. Some are mine others are for other investors I work with. I just got back from his family Christmas party. I contribute 50-75% of his business. He did me a solid, this is not a typical timeframe. The back of the napkin was just that. It has proven to be off in a number of areas. I will do another post when I have all the numbers together.
1 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Made a hard decision today. The 21st refi date is not going to happen. I am going to have the floor guys start on Monday. It is going to tie up the house for next week (12/10-12/14). The wood floors will be refinished from Monday to Thursday. Friday, the rest of the floor will be installed. It is going to take a day or two after the floors to get everything completed. The bathrooms (toilet and sink) will be completed after the floor.
I could turn everything up-side-down and just have the rest of the floor installed (Friday) and the project ready to be appraised in time for the 21st. I think I will get a better valuation if I do it all before the appraisal.
I have the appraisal is scheduled for the 19th. My rate lock expires on the 21st. The rate will go up by .25. The net effect will be less than $20 a month. I am going to refi another project with this one, which will save me $1750.
The countertop guy is coming early next week to make the template and should have it completed by the end of the week.
Kitchen pics to follow tomorrow
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Craig Martin:

This is really neat to see the process, Thanks for sharing! I'm new to reaI estate investing, but the BRRR method is quite intriguing. I'm impressed with the condensed timeline. Have you had any difficulty getting your contractor (contractors?) scheduled and finished on time? I'm curious what sort of relationship you had with the contractor prior and how that affected your rehab budget (when you were doing your napkin calculation!).
As far as the contractors go, I have an advantage. I send them 3 houses a month to reno. Some are mine others are for other investors I work with. I just got back from his family Christmas party. I contribute 50-75% of his business. He did me a solid, this is not a typical timeframe. The back of the napkin was just that. It has proven to be off in a number of areas. I will do another post when I have all the numbers together.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Made a hard decision today. The 21st refi date is not going to happen. I am going to have the floor guys start on Monday. This is going to tie up the house for the next week12/10-12/1. The wood floors will be refinished from Monday to Thursday. Friday the rest of the floor will be installed. It is going to take a day or two after the floors to get everything completed. The bathrooms will be completed after the floor.
The inspection is scheduled for the 19th. It will not be enough time to close on the 21st. I considered getting the appraisal without the floors being finished. I decided the higher valuation was more important.
It is going to cost me .25% more or $20 a month.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Walls are done and looking good. That front wall was paneling and there is a pic of it before painting in a previous post.
The floor needs to be refinished...MONDAY!
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
New Kitchen.
I used the Lowes cabinets. They look good and are cheap. I will not be using them again, they are not well made. I have a cabinet guy but did not use him this time.
I hate that window. It is a jalousie window, Florida's contribution to architecture. It cranks out small panes of glass. If it breaks, then I will replace it. I thought about just filling it with window blocks.
Leftover shower tile. 3x6 subway tile
Blinds are in the house. Just waiting on everything else to get finished, then I will have the Lowes contractor install them. See quick tip!
0 Reply
Ramon Vazquez
Investor · Kansas City, MO · Member since 2018 · 117 posts · 46 votes
7y
@Lesley ResnickThis is a great post! Would you mind sharing how you got the property? Did you have first bids as a realtor? Any advice for out of state BRRRR investors? Thanks and good luck with the REFI!
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Originally posted by @Ramon Vazquez:

@Lesley ResnickThis is a great post! Would you mind sharing how you got the property? Did you have first bids as a realtor? Any advice for out of state BRRRR investors? Thanks and good luck with the REFI!
This came through a wholesaler I do a lot of business with for myself and other investors. I am generally one of the first calls he makes.
A solid team is essential for out of state. You need people on the ground that can get things done.
Next Wednesday is the appraisal, fingers crossed. I will do a post on the refi and the numbers.
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
FLOORS FLOORS FLOORS
The wood is amazing. They sanded today and will stain tomorrow.
1 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Spoke to the lender today. I need to sign their agreement and send over my construction quotes that explain why the property is vacant.
Lastly, I need the appraisal completed.
Todo
Finish wood floor - Thursday
install new plank tiles - Friday
Plumbing completed - Toilets sinks - Monday
Hot water heater - Monday
Kitchen countertop. The granite is supposed to be measured this week and installed next.
A/C needs to be finished - Friday
0 Reply
Lesley Resnick
OP
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
My floor guy is an artist.
A coat of poly is being added today. This is just the stain!
The living room has 4-inch wide wood planks
Bedrooms have 3-inch wide wood planks
Not going to keep the wood in the bathroom. I am going to cover it with the other floor. Water and wood floors do not mix
Bedroom with 3-inch boards.
2 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Lesley Resnick Wow! Those floors turned out amazing! I wish the property I just purchased had them. For the tiling in the bathroom and kitchen did you use any spacers on the grout lines?
Thanks
0 Reply
Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
7y
Your floors are amazing. I was out voted on restoring the entire 4inch flooring in the upper floor of a cape we just flipped.
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