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Updated about 5 years ago, 10/29/2019

User Stats

136
Posts
41
Votes
Corey Reyment
Pro Member
  • Wholesaler
  • Green Bay, WI
41
Votes |
136
Posts

Case Study Of the BRRRR

Corey Reyment
Pro Member
  • Wholesaler
  • Green Bay, WI
Posted

Hi guys! I wanted to share a quick case study of the BRRRR. This is one of my favorite strategies in real estate! I mainly love it because it's doable to anyone! It doesnt matter if they don't have a lot of funds, don't have great credit, don't have experience, etc. Anyone can do it buy following the simple principles.

Here are the numbers - My operations manager and her husband bought an upper/lower duplex from us. It was rented and had a hoarder living in the lower unit. It needed about $5,000-$10,000 in repairs from what we could tell on our initial walk thru with the sellers when we were putting it under contract. They paid $50,000 for the property.

We funded the deal for them as a private investor. At closing, they received a check for about $250 (credit for rents/security deposits/tax prorations, etc after closing costs and title fees) after everything was settled. 

The property was rented low. I believe it was $350 a month in the upper and $450 in the lower. The tenants were given a rent increase notice and both chose to leave. They replaced all the windows in the property, did some exterior painting, had to change around the driveway to get it to the Green Bay city code, and then after the tenants moved out they had to do a little work to the interior. 

They hired property management in the process so THEY didn't do hardly any of this work. 

The management company was able to find new tenants. The lower unit is now rented for $700 per month and the upper unit is now rented for $650 per month. 

Their appraisal came in low! O boy! The comps were in the $80-$100,000 range but the appraiser knew they bought it for $50K and only gave them a $71,000 appraisal! The good news, they had been collecting some rents in the process and because of their original loan amount, they only needed to bring $99 to closing! 

Anyone can do this! The first one is the hardest! I encourage you to go out, take massive imperfect action and get that first deal!

refi check
  • Corey Reyment
  • User Stats

    974
    Posts
    645
    Votes
    Joseph Firmin
    • Rental Property Investor
    • Smyrna, GA
    645
    Votes |
    974
    Posts
    Joseph Firmin
    • Rental Property Investor
    • Smyrna, GA
    Replied

    So great, love this! Congrats to them!

    User Stats

    136
    Posts
    41
    Votes
    Corey Reyment
    Pro Member
    • Wholesaler
    • Green Bay, WI
    41
    Votes |
    136
    Posts
    Corey Reyment
    Pro Member
    • Wholesaler
    • Green Bay, WI
    Replied

    @Joseph Firmin, Thank you! Very cool for them!

  • Corey Reyment
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