My First BRRRR! With Pictures!

My First BRRRR! With Pictures!

Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes

I have completed my first BRRRR successfully! It is a 2Br 1 Ba small SFR (Pictures Below). It took me about 4 months to complete this Rehab in from start to finish. I Hired out Most of the Big items : New roof, driveway, furnace, siding, and fence. I performed ALL other work by myself with occasional help from Family members: Complete Electrical Revamp (New wires, Panel, Meter Base, outlets, etc), New Pex plumbing, Shed revamp, Landscaping, Windows, flooring..and basically everything else. I did all of this while working full-time at my day job, and going to this house everyday after work for 2-3 hours and working on Saturdays and Sundays. I have learned so much and I now know that I never want to do most of the work again. I only want to perform the work that I am excellent and efficient at, and that is basically the electrical stuff only LOL. I'm good at everything...just not efficient. I am so glad I was conservative with my numbers at first, because There were a bunch of things that I did not know I would have to fix/replace. But since I was super conservative, it worked out great.

I funded this deal using a HELOC from my parents house, because I made a deal with my father that I would completely renovate his kitchen for free labor on the entire thing, if he would setup the HELOC for me to use. He was so happy with his kitchen that he set up the HELOC with no more questions asked. I completed his kitchen a year ago, and this HELOC had been setup for me to use for over a year now.

I found this deal because I heard an elderly lady passed away down my street, and heard that her relatives (the executor of the estate) were staying there. So I went over to the house and knocked on the door and spoke with them. I asked if they would sell to me and told them my intentions for the house. We really got along great and they decided to sell me the house. This house hadn't had any maintenance on it since the 80's, and was in complete disrepair (the before pics don't do justice). On top of that, the lady that had passed away was a chain smoker, and the place stunk sooo bad.

Here are my numbers:

Purchase and closing costs: $102,000

Rehab and Holding Costs: $53,000

Refinancing costs: $8000

ARV: $230,000

Total Equity in the end: $67,000 +/-

I have not found a renter yet, as it is winter and I just finished 2 days ago :) But even on my low end rent estimate I should cash-flow $100/mo+, and my high end $400/mo. Below are the before and after pictures. I used the same view as the before pictures, I did remove a wall between the kitchen and LR, FYI.

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Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
7y

Great job @Cam Jimmy!  I think my favorite part of your story is the creative solution to raise your capital with your father.  Way to think out of the box to get to your goal!  

Just curious, how did you go about negotiating the purchase price?  

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  • Oklahoma City, OK · Member since 2016 · 62 posts · 37 votes
    7y

    Pics look good, congrats!

  • Rental Property Investor · Virginia Beach, VA · Member since 2018 · 15 posts · 5 votes
    7y

    Great job.  You are so encouraging.  Well done!

  • Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    7y

    Great job @Cam Jimmy!  I think my favorite part of your story is the creative solution to raise your capital with your father.  Way to think out of the box to get to your goal!  

    Just curious, how did you go about negotiating the purchase price?  

  • Investor · Fort Wayne, IN · Member since 2013 · 152 posts · 126 votes
    7y

    Awesome job! I love seeing walls come out to open up and improve a space

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    Thank you everyone!

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    @Jon Crosby Thanks for your comment. Well when I walked over to the house to meet the executor, I already knew the place was in disrepair... So I knew going up to the house, that it was going to be a low offer. After I met them I was honest about what the houses sell for in the neighborhood, and what they would need to do to get the house up to sell-able standards. But they were from another state, and they were just there to deal with the estate. So I told them exactly what needed to be done and my intentions of turning it into a long term buy and hold rental, and why I was making my offer..and let them know that they could probably get more money using an agent (on paper) but they would have to wait, and hold the house, and deal with a real estate agent, and so on. I could tell they just wanted to go back home to where ever they were from. So I made my offer and said I can close very fast using cash.. and they said yes! That offer was $105,000. Then I hired a home inspector and he found a few big items that I missed... I'd say about $10,000 worth of repairs (if using a contractor), and at this point the executor already flew back home. So I called them up and asked them if they would meet me in the middle and renegotiated the price down to $100,000. 

  • Flipper/Rehabber · Metro Detroit · Member since 2018 · 3 posts · 1 vote
    7y
    @Cam Jimmy This is awesome! Congratulations! Well done, I hope the property continues to do well for you!
  • Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    7y

    @Cam Jimmy Very, very impressive to do all of the work yourself AND have a "day job". Do you have kids? If so, your wife is the hero! haha. If you had to contract everything out the numbers wouldn't have worked. 

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    @Adam M. haha I do not have kids, but I do have one on the way! I still consider my wife a hero though. She helped me even though she is pregnant, I could not have done it without her. If I had contracted everything out, my numbers would not have worked for the %75 LTV refinance, and BRRRR strategy. However, I still could have made about $20,000-$25,000 by doing a flip.

  • Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    7y

    @Cam Jimmy Congrats! AND yes, she is definitely a hero. :) You better do another project before your kid arrives! 

  • Rental Property Investor · Statesboro, GA · Member since 2016 · 27 posts · 17 votes
    7y

    Hey congrats. I got a few buy and hold homes. Looking forward to do my first BRRRR early next year. Inspirational, awesome work.

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    Thank you everyone for the kind words!

    @Adam M. We are already looking for our next project.. This next one we want to do a "live-in-flip" Just as @Mindy Jensen has done, for tax free gains. My goal is to do 1 "live-in flip" every 2-3 years while completing 1-2 BRRRR's between those.

  • Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    7y

    @Cam Jimmy Oh buddy, your wife is going to love the "live-n-flip! Especially with a newborn. :)

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    haha yeah its definitely going to be tough :)

  • Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
    7y

    Yeah I love the pics

  • Investor · Kailua, HI · Member since 2016 · 72 posts · 33 votes
    7y

    @Cam Jimmy Very nice job on your first BRRRR. Keep it going!

  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y
    Originally posted by @Alan Kahanu:

    @Cam Jimmy Very nice job on your first BRRRR. Keep it going!

     Thanks!

  • Sergey TkachevPro Member
    Investor, Agent, CPA · West Sacramento, CA · Member since 2009 · 690 posts · 262 votes
    7y

    Congrats on the rehab and your first BRRRR! Thank you for sharing with us!

  • Investor · San Jose, CA · Member since 2018 · 313 posts · 230 votes
    7y

    Wow!  A property completely transformed -- inside and out.  Thanks for sharing.

  • Rental Property Investor · Charleston, SC · Member since 2018 · 16 posts · 15 votes
    7y

    Inspirational! Great job man. 

  • Member since 2018 · 1 post · 2 votes
    7y

    Great Job! Any lessons learned on this one? Something you would have done differently?

    Thank you for sharing :) 

  • Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 208 posts · 61 votes
    7y

    Looks great. I’m curious, how much did the bath fitter cost? I’m guessing you hired that out?

  • Member since 2018 · 3 posts · 0 votes
    7y

    This is awesome! congrats

  • Member since 2018 · 1 post · 0 votes
    7y

    looks great! Good job!

  • Member since 2018 · 2 posts · 0 votes
    7y

    @Cam Jimmy - this is amazing and so inspiring! I'm looking to purchase my first investment property out-of-state while also working a full-time job and I'd love to talk to you about your experience and any words of wisdom you might have more. Let me know if you'd have 15 minutes for me to pick your brain over the next few weeks. :)

    CONGRATS!

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