First BRRRR deal (Kinda)

[Tomas Roberto rodriguez]

Greetings Friends-

My wife and I completed our first BRRRR Deals today. 2 houses. 1 refi loan.

House 1

We found a house through a wholesaler last October, but the sellers couldn’t close until mid February. 

The house was pretty rough. Smelled like money and had tons of junk left behind. A small fire had a hole in the back of the house so some new electrical updates were needed.  New plumbing, new tile, new AC unit. And lots of paint. 

Purchase price- $45k

Rehab- $25k

Rent- $1250 (2 yr lease)

Refi- 4.75 15 yrs

New appraisal $140,000

House 2

This one was a much smaller project. Same wholesaler. Mostly paint, flooring, lots of plumbing, new tile shower surround, cleaned up the yard (shed tear down).

Purchase $21k

Rehab $4k

Rent $700

Refi 4.75% 15 yr 

New appraisal value $50,000

We borrowed money from my sister for the properties. She made a pretty good return on her loan. 

We have two more projects under contract to start next week with our BRRR money after paying back the initial loan.

Lots of work. Some gross stuff. But worth it.