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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  • Rental Property Investor · Pawtucket, RI · Member since 2018 · 38 posts · 12 votes
    7y
    @Cam Jimmy congrats. Everything looks good.👍
  • Investor · Anchorage, AK · Member since 2016 · 222 posts · 294 votes
    7y

    @Priya Thomas I originally had it listed for $1695... But I lowered it after the first week to $1595/mo. Its tough to rent in the dead of winter... But I have received my first couple of applications. Hopefully they pass my minimum requirements :)

  • Investor · Crested Butte, CO · Member since 2013 · 12 posts · 8 votes
    7y

    @Cam Jimmy - this is awesome! Congrats on your first BRRRR. The before and after pics are really powerful, so thanks for sharing. Good lucky finding a renter - although, looks to be a great rental so hopefully you'll find one fast!

    Your story is inspiring and we look forward to implementing the BRRRR strategy into our business in the coming months.

    Thanks for sharing and good lucky with the new baby. 

  • Rental Property Investor · Houston, TX · Member since 2013 · 476 posts · 294 votes
    7y

    Knocked it out of the ballpark!

  • Rental Property Investor · Denver, CO · Member since 2018 · 81 posts · 62 votes
    7y

    I love to see transformations (before and after pictures)! Did you know, there are several components of your building that depreciate faster than the rest of the property? There is a tax strategy called Cost Segregation. Check it out, you could benefit you greatly Cam! 

  • Brentwood, TN (37027) · Member since 2018 · 2 posts · 1 vote
    7y
    @Cam Jimmy thank you for sharing.
  • Real Estate Agent · Cleveland, OH · Member since 2017 · 184 posts · 253 votes
    7y

    @Cam Jimmy

    Awesome work! I like the creative use of bartering to use your parents HELOC. Just goes to show with a will, there's a way. Also, way to hustle and get it done working a full time job! I have found that it's much easier to keep your numbers under control when you are willing to do the work yourself. What a success story...congrats!

  • Rental Property Investor · Phoenix, AZ · Member since 2018 · 193 posts · 41 votes
    7y
    @Cam Jimmy congrats good sir, you are an inspiration
  • Rental Property Investor · Kansas City, MO · Member since 2018 · 2 posts · 1 vote
    7y

    I am currently looking for my first BRRRR property around Kansas City. Thank you for sharing your's it is motivating to see your success!

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

    I'm impressed with the reno. Congrats. You've inspired many of us.

  • Allentown, PA · Member since 2018 · 29 posts · 9 votes
    7y

    This is awesome. I really like that you gave your dad a kitchen in exchange for a HELOC. Place looks great.

  • Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
    7y

    Touchdown and a two-point conversion!!!!

  • Investor · Northern Virginia · Member since 2017 · 159 posts · 59 votes
    7y

    Congrats! Good Job.

  • Warrenville, IL · Member since 2018 · 10 posts · 5 votes
    7y

    @Cam Jimmy Awesome story! Before and after pics are great, congrats on your first BRRRR! Very inspiring, nice work

  • Johns Creek, GA · Member since 2018 · 11 posts · 3 votes
    7y
    @Cam Jimmy, Congratulations
  • Investor · Charleston, SC · Member since 2017 · 21 posts · 7 votes
    7y

    Looks amazing @Cam Jimmy... I love hearing creative ways of doing real estate deals. You found a way to help your father and in return he helped you. I'm sure you helped the family that you purchased the property from and the lady that passed away is probably looking down and smiling at how amazing her home looks after you finished with it.  

    Everybody's winning!!

  • Rental Property Investor · Lancaster, CA · Member since 2016 · 68 posts · 26 votes
    7y

    Well done! I like how you put a small storage where the washer was. It didn't belong there. 

  • Seattle, WA · Member since 2017 · 1 post · 1 vote
    7y

    A big step, congrats! Looks good!

  • Realtor · Charlotte, NC · Member since 2017 · 7 posts · 1 vote
    7y

    Congrats @Cam Jimmy, 

    Love the creativity and push to get it done. I can't wait to see the report on your second one.

  • Richmond, VA · Member since 2017 · 1 post · 1 vote
    7y
    @Cam Jimmy Awesome stuff and way to stay committed!! Truly an inspiration.
  • Fort Worth, TX · Member since 2018 · 2 posts · 1 vote
    7y

    Congrats! You did a fantastic job! Thanks for sharing with us!

  • Member since 2018 · 6 posts · 3 votes
    7y

    congratulations 

  • Real Estate Agent · NJ · Member since 2018 · 2 posts · 1 vote
    7y

    Congrats! Great pics!

  • Contractor · santa maria, CA · Member since 2017 · 26 posts · 14 votes
    7y
    @Cam Jimmy nice job! I also purchased a house for the purpose of renting. At least a portion of it. My city is now allowing home owners to legally split the unit essentially making it a duplex. So I’m going to live in one side and rent the other. I’m adding a second kitchen and adding walls to divide the house. The whole house has been well maintained but has the style of the 70’s. It has some interesting texture and the walls are painted green. Yeah interesting... However, for some reason once you’re inside it looks ok. The original hardwood floors are in good shape, the carpet looks new, the bathrooms are clean. So although your house looks more updated, (From the pictures I thought you were selling) I think I can find a tenant. I’m sure you’ll find a tenant. Again, good job!
  • Flipper/Rehabber · Denver, CO · Member since 2018 · 1 post · 1 vote
    7y
    @Cam Jimmy nice work! It inspires because I’m at that point of getting ready to pull the trigger on a brrrr. Still analyzing deals and have confidence in my ability now! Keep it going!
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