My first BRRR in Huntsville Al

My first BRRR in Huntsville Al

Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $83,300
Cash invested: $17,000

This was my first BRRR and I used all the strategies that BP has suggested.Started up by opening a HELOC on my primary to have 100K of cash at hand. Got this 4Bed/2bath off market property through one of my realtor. The seller got this through probate and wanted to sell this quickly. Mostly bathroom upgrades, floor, kitchen upgraded and upgrading electrical panel. Estimated ARV at around 140K. Started the offer at 75K all cash. Went back and forth for sometime and closed at 83,300.

What made you interested in investing in this type of deal?

Off market property with cosmetic rehab and great location.

How did you find this deal and how did you negotiate it?

Got this deal through one of my realtor and it had a estimated rehab of 17k and I wanted to keep my out of pocket cash within the 1% rule. The house would be rented for 1100 so had to keep my total out of pocket to 110K.
I kept 10K as buffer, so wanted to keep everything within 100K; so started with 75K and

How did you finance this deal?

Did a all cash offer. I used cash from my HELOC account that I opened on my primary residence.

How did you add value to the deal?

By upgrading the bathrooms and kitchen.

What was the outcome?

My contractor rehabbed the property for 17k.Went to the local lender for cash out refinance and it got appraised for 145K! Woo hoo! Got it rented in couple of months for 1100 per month. Took most of my cash out.

Lessons learned? Challenges?

Rehab time went a little longer. I thought the rehab will be done within a month but it took close to 2.5 months.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

@Jason Grey, you are a rockstar!

Cannot thank him enough for getting me this deal!

10Reply
103 views

Investor-friendly agents in Huntsville, AL

See the agents BiggerPockets members work with in Huntsville, AL.

Most Popular Reply

Huntsville, AL · Member since 2019 · 21 posts · 14 votes
7y

@Gorden Lopes

Way to go on the BRRRR! I'm here in HSV and just getting started in REI and looking to build a team locally. Would you be willing to recommend your contractor?

See this reply in the discussion

34 Replies

Jump to latestLatest
  • Rental Property Investor · San Francisco, CA · Member since 2017 · 132 posts · 56 votes
    7y

    @Gorden Lopes

    Amazing! Congrats!!

    Any insights you gained managing a rehab from the distance?

  • Contractor · Silverdale, WA · Member since 2019 · 5 posts · 2 votes
    7y

    @Gorden Lopes this is awesome I would love to hear more about how you managed the project from a distance, what lead you to Huntsville? How did you network when you first started shopping in the area?

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Bastian Kneuse

    The floor of the house looked in ok shape and there were some spots that the contractor told that he can clean it up. But when the rehab was done, I still saw the spots. The contractor mentioned that he tried but could not remove it. I had to then ask him to replace the floors and that added to the delay as well. In retrospect, I should have estimated for flooring as well.

    The other basic but important thing is to always take quotes from multiple contractors just to make sure you are not being taken for a ride. I am still learning rule of thumb for calculating rehab cost and having multiple quotes helps. 

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Fletcher Hardy

    It has been a long journey. I guess you just have to give time to build relationships and trusts. I think initially its hard to give value to others but you just have to think of ways you can give value to other folks and thats how I tried networking! 

    How did I find huntsville Al? 

    Couple of years back, I had short listed Birmingham, Huntsville and Indianapolis based on talking to few turnkey providers. And as @Brandon Turner recommended that you talk about real eastate investing goals with your friends, I kept talking about how I am looking for a investment property and one of my friends cousin brother lived in Huntsville! I spoke to him and he spoke highly of the city! And thats how I ended up deciding on Huntsville! 

    BiggerPockets is amazin, I have just tried to do things that has been recommended in BP podcasts and it has created wonders!

  • Member since 2019 · 16 posts · 4 votes
    7y

    Great job! Looking for my first deal as well!

  • Member since 2018 · 18 posts · 3 votes
    7y

    Great job! Did you find a real estate agent thru BP?

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Andrey Keller

    Yes, @Jason Grey! A complete rockstar! Totally owe him for getting me this one!

  • Accountant · Member since 2019 · 30 posts · 2 votes
    7y

    Congrats on the deal! This is an inspiring post. 

    After deciding on a market, was your next step finding a realtor?

    How long were you paying interest on the HELOC before refinancing? Was it just for the 2.5 months of rehabbing?

    How did you come up with the $140K ARV when analyzing the deal? Is this through BP's calculators?

    Thank you!

  • Member since 2018 · 18 posts · 3 votes
    7y

    @Gorden Lopes thank you! @Jason Grey are you taking on new clients?

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Lan Nguyen

    All the best!! Feel free to message me if you need it to be vetted.

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Chris Marte

    After deciding on the market, I just went on to Huntsville forum and read through all the posts and got tons of info on the zip codes, PM companies, and other investors. Messaged them and then had a call with some. Got referrals on realtor and just started the ball rolling.

  • Rental Property Investor · Huntsville, AL · Member since 2019 · 21 posts · 7 votes
    7y

    Congrats. Nice find!

  • Member since 2019 · 16 posts · 4 votes
    7y

    Did you manage the rehab from OOS or did you have boots on the ground?

  • Huntsville, AL · Member since 2019 · 21 posts · 14 votes
    7y

    @Gorden Lopes

    Way to go on the BRRRR! I'm here in HSV and just getting started in REI and looking to build a team locally. Would you be willing to recommend your contractor?

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Lan Nguyen

    I managed it OOS. Asking my contractor to take pictures and videos. I had to follow up few times before I got the pictures; it is just that contractors are not used to working with remote investors! :)

  • Rental Property Investor · Albertville, AL · Member since 2016 · 20 posts · 6 votes
    7y

    Nicely done!  Where in Huntsville is the house located?  What is the square footage?  What is your monthly cash flow after mortgage, management and expenses?

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Charles Pope

    it is in 35803 zoned in Grissom high. Cash flow wise it is just been 4 months so can't tell exact how much it cash flows as it usually make sense to calculate cash flow after a year. But based on my numbers I think this will cash flow at least 350 after all the expenses and vacancies.

  • Specialist · Birmingham, AL · Member since 2014 · 81 posts · 68 votes
    7y

    @Gorden Lopes awesome work! Always love seeing a success story, and in Huntsville no less ;)

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    7y

    @Maureen McCann

    Thanks a lot!

  • Huntsville · Member since 2018 · 4 posts · 2 votes
    6y

    Awesome job Gorden!! I'm a Huntsville native and Huntsville investor. Well done! We've done a few flips so far and have our first property we intend to BRRRR under contract now.

    Would you mind sharing your contractor contact? We are always trying to expand our network of good contractors, bonus if they are investor friendly. Finding any right now is a struggle! Thanks,

    Brittney

  • Rental Property Investor · Fremont, CA · Member since 2016 · 300 posts · 222 votes
    6y

    Hey @Brittney Saffell!

    Congrats and best wishes for your first BRRRR.

    I can share my contractor info. Please DM me and I can give more info.

  • Oakland, CA · Member since 2016 · 3 posts · 1 vote
    6y

    Hi @Gorden Lopes learned a lot from this post alone!  I'm also in the Bay Area and taking my first steps to invest OOS. Would appreciate picking your brain about investing in the Huntsville market. 

  • Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
    6y

    @Gorden Lopes

    Wow congrats ! Now time to do it again and build your long term portfolio. Best of luck in all your endeavors.

  • Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    Congratulations Gorden!

  • Flipper/Rehabber · Leominster, MA · Member since 2020 · 667 posts · 384 votes
    6y

    This is an excellent deal!!  Low risk, I like it!!!  Congrats!!! 

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