All Forum Posts by: Brandon Spurlock

Annnnd pictures are sideways...anyone know how to remedy that?

Hey BP! I just closed on the Refinance portion of my first ever deal, a BRRRR. I guess once I "Repeat" then I would have actually completed the BRRRR process. For reference, I've listened to the podcast for about a year. In Summer of 2018, my wife and I took out a HELOC on our primary home in Richmond, VA, as it had appreciated in value greatly in just our two years of ownership. We opened the HELOC and sat on it so we'd have it ready when the time came, and in January 2019, got a phone call from a mutual friend who is a wholesaler in the area. We had met a few months prior, and he called to let me know he had a house under contract that was in the ballpark of my HELOC amount, and thought it may be a perfect first deal for me.

The process actually went relatively smoothly, except for having to fire a contractor. Essentially, he oversold his ability to finish the attic, was doing a poor job on drywall, and I had to fire him and hire a new guy. This swap in contractors cost me an additional $4,000. The house was a 900 sq ft single family with 2 bed, 1 bath and a walk-up unfinished attic. The main work done: refinished the hardwood floors, painted throughout, and finished the attic. Now it's a 3 bed, 1 bath, and 1250 sq ft.

Here are some numbers:

Purchase Price: $61,000 (paid for using HELOC)

Rehab Cost: $17,000 (paid with personal savings)

All-in Price: $78,000

ARV: $105,000 (based on appraisal from refinance process)

Rent: $1,000/month (Lease signed mid-project)

At the end of it all, I had to leave about $4,000 in the deal. The ARV wasn't quite high enough to get all my money back out when I refinanced, the fire/re-hire of a contractor hurt me a little, and the closing costs were higher than anticipated. But, for my first deal I'm thrilled, just got my my money back out, and will be looking for deal #2!

Some before pics:

And some after pics:

Hey @Teren Cooley, congrats on getting your feet wet. It sounds like you jumped on a deal you couldn't refuse - good for you! Maybe there wasn't enough time to evaluate and make a plan, but if you got as good of a deal as you say you got, then that's great!

I'm a newer investor on RVA too, just about to complete my first BRRRR in the area. I work closely with another investor/contractor in the area, and he and I would be happy to come check it out, give some thoughts, and help where we can. We may even buy it from you!

I'll shoot you a PM and see what we can do.

I just bought my 1st rental property in Hopewell 3 weeks ago. In the middle of a light rehab now, and just signed a tenant this weekend! This is my first go round, so it's been a learning experience already juggling contractors, some who are doing well, and some, not so well. Benefits I've already noticed in Hopewell - people are willing to consider Hopewell if they're used to living/working anywhere south of Richmond. Also an obvious Fort Lee draw. And, tenants are likely from a max middle-class area, and keeping rehabs simple and low end are preferable (i.e. lower rehab costs).

@Katie Loehr I'll shoot you a DM.

Welcome Mark! I'm in Richmond too, newish to BP, and looking for my first deal in the Richmond area. Id love to hear how your group is structured, and your plans moving forward. I'm about to close on a HELOC this week and will be ready find a deal. Joining forces financially may be of interest to me if you're looking to add strength in numbers.

Welcome Josh! I’m also new and in RVA - hoping to buy my first investment by the end of 2018.

Hey @John Pierce, I live in the Northside and am still trying to figure out the best spots in which to invest. Petersburg looks good in certain spots, as does Chesterfield, and Manchester. I'm most familiar with Northside, but most homes are either too expensive, or too far gone.

@Will C. yes, the goal would be to find a deal that I can fund all on my own, which would be made easier if I go the route of the 95% heloc - it gives me $20k more in hand. If I go with the 90% interest-only, there's a greater likelihood of needing to partner with a private investor.

Question: you said I should go interest- only especially because this is a short-term strategy. Can you explain more about why that is? I was thinking because it's short-term, I can temporarily swing the large payments for a few months, until I can pay it back after a refi. The benefit being more money in hand, and no need to pay back an investor. Thanks for your thoughts!

Thanks for those thoughts @Bob Okenwa and @Brian Ellis. 

Just to clarify, my goal is to only go after a deal that gives me (and my money) an exit strategy in 6-12 months. I don't plan to carry a balance on the heloc for any given property longer than 12 months. Ideally, I'd love to BRRRR, pay the heloc balance with the refi, and let it sit at balance $0 with no more payments until the next deal.