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 · San Antonio, TX · Member since 2017 · 1 post · 1 vote
    7y

    @Cam Jimmy Congratulations on your first BRRRR! Thanks for sharing and the pictures look awesome!

  • Greg GaudetPro Member
    Investor · Pukalani, HI · Member since 2017 · 414 posts · 291 votes
    7y
    @Cam Jimmy Thanks a lot bro, you just made all my deals look like sh** Lol jk, incredible job!
  • Lender · Thornton, PA · Member since 2014 · 106 posts · 56 votes
    7y

    Great job and congratulations. Now you understand what it takes to complete a rehab and can now have an informed conversation with all of the contractors you hire for the next project.

    Good luck.

  • DE · Member since 2016 · 13 posts · 9 votes
    7y
    @Cam Jimmy how are you. congratulations on you first BRRRR. Im a new investor and I'm working in getting my first REI using BRRR too. Did you use HELOC to put in a downpayment for the property? thanks so much.
  • Investor · Douglasville, GA · Member since 2016 · 8 posts · 4 votes
    7y

    Congrats on your first BRRRR! Very encouraging for us in the same process. I agree about hiring out most of the work if you cannot do it quickly yourself. My husband and I did most of the work on our first rental property and it took FOREVER compared spending the extra money to get it done faster. It all worked out in the end and we quickly found a renter, but a lot of money wasted due to vacancy. :-) Looking forward to hear more about your successes!

  • Smithtown, NY · Member since 2008 · 29 posts · 6 votes
    7y

    Congratulations! It now looks like a nice property to rent. :)

  • Reedsville, WV · Member since 2018 · 7 posts · 2 votes
    7y

    Awesome! 

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

    @Richard Escano Thank you. There was no down payment necessary for a deal like that. I paid the entire amount with the HELOC.

  • Flipper · Napa, CA · Member since 2017 · 8 posts · 3 votes
    7y

    Very Nice!! Congratulations. 

  • Investor · Copper Center, Alaska/Indiana · Member since 2018 · 44 posts · 33 votes
    7y

    Way to go CAM!  You are truly an inspiration.  Glad to hear things are working out for you (and others of us, in this great state).  I hope to get to the point that I can do MORE of the remods that I am comfortable with, just not ready to leave the day time job yet.

    Being proactive is definitely the way to go.  By taking a chance, you set yourself up for success.  Congrats again!

    Judy Murphy

    Kenny Lake, AK

  • Member since 2018 · 67 posts · 24 votes
    7y

    Nice job!  I love the finished look.  Good luck renting it out!!

  • Flipper/Rehabber · Decatur, GA · Member since 2009 · 25 posts · 11 votes
    7y

    wow you have mad skills. I am curious as to how you developed so many contractor skills?

  • Member since 2018 · 14 posts · 4 votes
    7y

    Job well done.  Looks great

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

    @April C. Thanks April. I went through an electrical apprenticeship in my early 20's, and I was surrounded by all of the trades. I asked random people questions while I worked on my own projects at home. Youtube. And just doing it... Trial and Error.

  • Investor · Dallas, TX · Member since 2018 · 6 posts · 1 vote
    7y

    Congrats @Cam Jimmy! Job well done!

  • Rental Property Investor · Oreland, PA · Member since 2017 · 51 posts · 32 votes
    7y

    Great job!! Was that mold in the closet? Couldn't see clearly in the pictures.

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

    @Alicia H. Yes that was mold.

  • Rental Property Investor · NJ · Member since 2018 · 70 posts · 26 votes
    7y

    What a great transformation, thanks for sharing your story. It's a huge inspiration!

  • Realtor · Greensboro · Member since 2018 · 34 posts · 11 votes
    7y

    Looks great @Cam Jimmy! That's a lot of work - and 53k on the rehab... the numbers tell all though, 67k in equity on a cash-flowing property. Thanks for the share = motivation

  • Flipper/Rehabber · Medford, OR · Member since 2018 · 6 posts · 3 votes
    7y

    Hello Cam, first let me congratulate you.  That is great your first Brrrr.  Are you doing only investments in Alaska?  

    Yes doing the work yourself can really be a downer.  Finding or negotiating qualified contractors among the different home repair groups helps.  It may take trial and error but sure worth it.  Also if you have something like a Lowes or Home Depoe which are two of our big Home Improvement Centers here helps because they will do the installation for you, and you can add in the fee for your repair estimation.  Look forward to your reply.  Alice

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

    @Alice Thomsen Thank you! Yes I've only done investments in Alaska up to this point in my life. I'm open to investing outside my market, but I am not confident in doing so yet. Do you invest outside of your market?

    Fortunately for me, We do have both Lowe's and Home Depot where I live, so thank you for the advice on getting stuff installed by them :)

  • Rental Property Investor · Oneonta, NY · Member since 2018 · 16 posts · 3 votes
    7y

    Well done man!!!

  • Flipper/Rehabber · Medford, OR · Member since 2018 · 6 posts · 3 votes
    7y

    Cam yes we are looking to invest outside of our market here in Southern Oregon.  We are presently looking at a couple deals in Illinois.

    That is great that you too have Lowes and Home Depoe.  Here many of us prefer Lowes because our Lowes puts the price for the cost of installation right there in the area, and the departments are very helpful if you don't immediately see the installation cost.

    If by chance you are a veteran such as myself I automatically get a 10% discount at Home Depoe and at Lowes.

    Let me ask you a few questions to get to know your interests better.  Do you like to Hunt - Fish.  I use to do both.  Fortunately Southern Oregon is beautiful with several lakes to include National Park - Crater Lake.  There is fishing and hunting here.  We are close to the Pacific Crest Trail, Mt Ashland for sking, there is snowboarding, cross shoeing, hiking.  We are a short drive to California border and about two hours to the coast.  We have theater, Arts, Music, and a large University nearby.

    Alice

  • Flipper/Rehabber · Medford, OR · Member since 2018 · 6 posts · 3 votes
    7y

    I truly love what you did on the rehab of this place.  Heloc is a good way to go.  Great that you have an awesome father that believes in you.  Some of us are very fortunate and I was years ago with my father and my first home I bought.  Can't wait to see the next one.  

  • Rental Property Investor · portland TX · Member since 2015 · 2 posts · 1 vote
    7y

    Great looking house awesome job. 

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