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.

110Reply
1,040 views

Most Popular Reply

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?  

See this reply in the discussion

214 Replies

Jump to latestLatest
  • Investor · Eagle River, AK · Member since 2015 · 121 posts · 45 votes
    7y

    Cam Jimmy, good for you!! I live in Eagle River, AK and have bought property here as well as in Wasilla. My biggest problem is finding contractors who will actually show up and do what they said they would do. Their excuse is "the snow, the traffic,  truck won't start, girlfriend had a doctor's appointment" - which is crazy-making, of course. You've been able to do some of the rehab yourself, but I can't. If you know of any reliable workers who actually show up, let me know!!

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

    @Dolly Caswell Thanks Dolly. The way I get my contractors to show up, is to keep bugging them, and not pay anything (Unless I absolutely have to pay materials up front) until they finish the job. I also sometimes use the more expensive bid on some jobs, because they seem more professional. Just keep on bugging them and they'll show up if they want the money :) If you ever need a specific task done, I may have some people that I can ask that I know are reliable..just PM me.

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

    great!  , very inspiring. thank you 

  • Brentwood, TN · Member since 2018 · 20 posts · 5 votes
    7y

    Great Job. Congrats!

  • Dale MillerPro Member
    Investor · Atwater, OH · Member since 2017 · 48 posts · 23 votes
    7y

    Great Job @Cam Jimmy! Good luck on getting it rented out, great work.

  • Member since 2018 · 11 posts · 4 votes
    7y

    Very good job !!

  • Real Estate Agent · Haymarket, VA · Member since 2018 · 6 posts · 1 vote
    7y

    Looks great -- inspiring!

  • Real Estate Agent · Claremont, CA · Member since 2015 · 10 posts · 3 votes
    7y

    great job..so encouraging. I have funds but having a hard time finding the right place. I'm in the business . I have never tried the auction house..

  • Philadelphia · Member since 2019 · 10 posts · 1 vote
    7y

    Wow great job!

  • Member since 2018 · 13 posts · 3 votes
    7y

    @Cam Jimmy Very nice job on your first BRRRR. Thank you for all the information you have shared and the picture is awesome. This has been very motivational as I'm doing my research to do my 1st BRRRR. Thanks again! Keep up the great work!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.