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

    Looks great! Congrats! 

  • Rental Property Investor · Marietta, GA · Member since 2018 · 41 posts · 43 votes
    7y

    Great job - Quite the transformation! You did a great job. I'm sure it will get snapped up as a rental...What do rents on a place like this go for in Anchorage, Alaska?

  • Member since 2018 · 29 posts · 20 votes
    7y

    @Cam Jimmy It looks good! Congrats.


    Mike McCoy

  • San Tan Valley, AZ · Member since 2017 · 11 posts · 7 votes
    7y

    Way to go Cam! What a great testimonial of creative financing, capitalizing on the opportunity with respect of being honest and up front with the estate owners, and the perseverance to get your first BRRRR up and running! Love the before and after pics too! Keep up the good work!

  • Investor · Atlanta, GA · Member since 2017 · 20 posts · 5 votes
    7y

    Thanks for sharing the photos and the story. Did you use a national back for the refi or a local bank?

  • Philadelphia, PA · Member since 2017 · 46 posts · 32 votes
    7y

    Wow this looks great. What type of full time position do you have? Does it involve in RE or construction? 

  • Rental Property Investor · Spartanburg, SC · Member since 2015 · 14 posts · 3 votes
    7y

    Congrats! Was it hard to get the refi without a tenant? Just wondering if the lender would have wanted a tenant in place first.

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

    Congrats Cam, go do it again now...lol

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

    @Raquel MoralesThe biggest lesson I learned would be, Not to do most of the work myself. It was very hard on my body, and is not scale-able.

    @Chris Rosenberg Thanks. No bath fitter. I have a brand new tub from Lowes, Along with the "sturdi-fit" tub surround from home depot. Then simple caulking the joints. I did not hire this out.

    @Nadia Last Thanks! Feel free to contact me Via PM here on biggerpockets!

    @Gloria Sheridan Thank you, Id say low end ones in this neighborhood would rent for $1200, and higher end/new remodels go for 1600-1700.

    @Brian Dennis I used a local banks portfolio loan program, Thats how I was able to refinance before the 6 month mark

    @Bartosz Rosol Thank you. I went through a local apprenticeship for low voltage electrical work (telecommunications), where I worked side by side with electricians, and other trades. I would pick their brains all the time when I would do my own projects, and just learned a lot over the last 10 years. Also Youtube is an excellent teaching tool! 10 years ago I wouldn't have been able to tell the difference between a wood screw and a sheet metal screw... and now I'd say I'm pretty good at everything construction. The biggest thing I need to learn how to do is to hire people out though. This really takes a toll on your body especially while you are working another full-time job.

  • Rental Property Investor · Myrtle Beach, SC · Member since 2013 · 209 posts · 61 votes
    7y

    @Cam Jimmy Wow that’s awesome. I didn’t even realize Home Depot sold a product like that. Good to know. Thanks. 

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

    Thank you everyone! I'm sorry if I missed a question, I had no clue I'd be getting this kind of feed back lol!

    @James Yang Thanks! Yes it was kind of difficult, but my debt to income is excellent as I have no consumer, school loans,  or credit card debt of any kind. With mine and my wifes income, we were able to qualify with no tenant. 

  • Scotch Plains, NJ · Member since 2015 · 89 posts · 31 votes
    7y

    @Cam Jimmy nice job!!! Very inspirational and a great creative funding solution with your dad. Will he loan me money, hahahah!!! Just kidding.

  • Rental Property Investor · St. Louis, MO · Member since 2017 · 48 posts · 14 votes
    7y

    @Cam Jimmy you've done a great job. Botj exterior and interior look great! Congrats!

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

    wow that's amazing phenomenal job!

  • Member since 2018 · 8 posts · 0 votes
    7y

    Looks like a well done project!

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

    Just a little advise from a rental investor of several houses......the hassle of getting the rent along with renters that don't treat the property as they should.....and yes did I mention eviction process it gets costly by the time they get out your 3 or 4 months behind.....for all the work you did you be better off just flipping it.....my Husband and I have done this rental investment for the last 16 years it's not at all what you think and we do all the work ourselves except for the big-ticket items.....of course, we are from upstate New York maybe you have a better area to pick different tenants.....we also did a few flips if we had to do it over that's the way to go......good luck in your new adventure wish you well....it's hard work.....PS we are getting rid of them one by one....

  • Maitland, FL · Member since 2016 · 38 posts · 16 votes
    7y
    @Cam Jimmy fantastic job! Roll-on to the next one!
  • Investor · Atlanta, GA · Member since 2017 · 20 posts · 5 votes
    7y

    So just to reconfirm: you used cash from the HELOC to cover the purchase and rehab materials? Since you did all the work there was no labor cost in the rehab. Do you have a estimate on the labor cost?

  • Rental Property Investor · Cleveland, TN · Member since 2016 · 8 posts · 2 votes
    7y

    Fantastic, very inspiring story and photos---way to go!  Best of luck on the next one.  

  • Oakwood, GA · Member since 2018 · 2 posts · 0 votes
    7y

    Awesome job flip that bad boy and move to your next project.

  • New to Real Estate · 92656 · Member since 2018 · 61 posts · 9 votes
    7y

    @Cam Jimmy

    Thanks for sharing, enjoyed this thoroughly. On to the next one!

  • Member since 2018 · 9 posts · 1 vote
    7y

    Love it! Congrats!!

  • Rental Property Investor · Loves Park, IL · Member since 2018 · 50 posts · 16 votes
    7y

    Great job!!!

  • Rental Property Investor · Loves Park, IL · Member since 2018 · 50 posts · 16 votes
    7y

    Great job!!!

  • Andrew SyriosPro Member
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    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    7y

    Congrats Cam and the property looks great! Now onto the next one!

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