BRRR Success Story Saint Paul Minnesota

BRRR Success Story Saint Paul Minnesota

Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes

Purchase Price: $115,000 Rehab: $110,000
Bought and Renovated using a local hard money lender Pine Financial 

Refinanced out with a new commercial loan. New appraisal after renovations came out at $400,000 leaving 160,000 in equity

Loan Amount $240,000
Rate 4.75
Amortization 25 yrs
Principle and Interest= $1,375/mo
Taxes=$412.33/mo & Insurance=$139.90/mo
Total PITI= $1,927.23

Unit # 1: 2 beds and 1 bath $1350
Unit # 2: 4 beds and 1.5 bath $1850
Total Rents= $3,200

Monthly cashflow after PITI= $1,272.77/mo

I found this property on the MLS. First offer was 95K about 6 months later and a lot of follow up we came to an agreement. I hold my real estate licensed and have an automatic search that gets sent to my email whenever a duplex in Saint Paul hits the MLS. I also hold my general contractors license so I managed the project from beginning to end. After a few years and a lot of trial and error I have built a team of carpenters, plumber, Hvac , electrician, painters, etc. This project went pretty smooth biggest hurdle was having the building inspector that I was familiar with retire in the middle of the project and a new one coming in with a different way of doing things, for example coming in to do an inspection a week after calling him, little stuff like that. Wish I would have taken after photos but I have included photos that came with this appraisal report.

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Most Popular Reply

Investor · Newport, OR · Member since 2018 · 23 posts · 7 votes
6y

Congratulations Rashad!

See this reply in the discussion

38 Replies

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  • Investor · Newport, OR · Member since 2018 · 23 posts · 7 votes
    6y

    Congratulations Rashad!

  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Rashad K. I'm so happy to see you kill it.  Great job.

  • Investor · Salem, OR · Member since 2020 · 30 posts · 28 votes
    6y

    Nice work @Rashad K.! Keep crushing it. 

  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    6y

    @Rashad K. Congrats on the deal! Nice job on the rehab and a solid deal. I remember seeing this deal on the MLS (if memory serves me, it had a high days on market and a distinctive look!)

    Did you keep the red exterior color or paint it a different color?  The red is pretty loud.

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Pam Holbrook thank you!

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Tim Swierczek thanks Tim !

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Matt Williams thank you!

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @David Barnett yeah it was up there for a while. It had a listing and co listing agent both of which were pretty unresponsive. Kept the siding the same color, definitely debated changing it but by the time summer came I was wrapping up the project and running out of the budget .

  • Minneapolis, MN · Member since 2017 · 28 posts · 26 votes
    6y

    Impressive results @Rashad K.! It's great to see you give that property new life. I've been looking into the BRRRR method and stuff like this makes me even more driven to get my systems lined up for a BRRRR.

  • Rental Property Investor · Sarasota, FL · Member since 2020 · 154 posts · 72 votes
    6y

    @Rashad K. Fantastic job! I am curious was it a strategic move to only refinance at 60% of the appraised value and not pull out 75-80%? I am asking because this is exactly what my investment strategy is going to be(MF-BRRRR) and I'm analyzing deals with the higher refinance % in mind. Your result is very inspiring indeed.

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Joseph M'Mwirichia good question I’ll send you a pm

  • Forest Hills, NY · Member since 2018 · 24 posts · 23 votes
    6y

    I can't wait to my first project, awesome story!! Question, did you project the ARV to get up to $400,000 or was the a nice surprise? Any background info to how worked your way to that number, would be greatly appreciated.

  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 592 posts · 403 votes
    6y

    Thanks for sharing @Rashad K., awesome work!

    @Adam Weisenburger ^^

    Upside Property Sales 4.9110 Reviews
  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Adam Tafel thank you!

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Richard Wilson just a matter of time. Everything I’ve learned has been from bigger pockets. When I first bought it it appraised at 316k with my scope of work. However there were other duplexes around there selling as high as 380 at the time. By the time I finished my project it was 5 months later and prices had gone up. There were a few around 400 and even 1 as high as 480. I would be lying if I said I didn’t do some pushups when I received the appraisal tho 🤣

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Richard Wilson as far as working to the numbers i just took duplexes within the same neighborhood, within 10% square footage, within a mile, that recently sold within the last 12 months and priced it out. I would say that area is a little unique because if you cross the freeway which is only a few blocks away you get into a C neighborhood but if you go the opposite way a few blocks houses are selling for half a million

  • Rental Property Investor · Saint Paul, MN · Member since 2020 · 6 posts · 1 vote
    6y

    @Rashad K. Way to go!

  • Rental Property Investor · Peru, NY · Member since 2020 · 26 posts · 4 votes
    6y

    @Rashad K. Such an Inspiring post!! I am in the education phase of my investing career and BRRRR strategy is the path I am eager to follow.

    What would you say was most helpful or strategy in building your team?

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Jayce Wagner thank you!

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Matt Williams thank you!

  • Rental Property Investor · Hutchinson, MN · Member since 2019 · 42 posts · 3 votes
    6y

    @Rashad K. Great job.

  • Forest Hills, NY · Member since 2018 · 24 posts · 23 votes
    6y
    Originally posted by @Rashad K.:

    @Richard Wilson as far as working to the numbers i just took duplexes within the same neighborhood, within 10% square footage, within a mile, that recently sold within the last 12 months and priced it out. I would say that area is a little unique because if you cross the freeway which is only a few blocks away you get into a C neighborhood but if you go the opposite way a few blocks houses are selling for half a million

    That's sharp. I appreciate that key right there. These are the type of jewels that rookies appreciate. 

    Congrats again on the successful turnaround. Please post what comes next.

  • Port Saint Lucie, FL · Member since 2020 · 14 posts · 3 votes
    6y

    @Rashad K. Congratulations Great Job!!!

  • Rental Property Investor · Chicago, IL · Member since 2020 · 49 posts · 9 votes
    6y

    @Rashad K. Congrats

  • Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    6y

    @Andrew R Tillett thank you!

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