My BRRR Success Story.

[Saji Ijiyemi]

Buy

• Property Source: auction.com

• My Source of Funds: 401(k) Loan

• Purchase Price: $154,500
• From me: Down-payment = $15,450 (10%), Closing Costs = $11,587 (7.5%), Points = $3,281 (2%), Interest = $6,500 (4%)
• From Hard Money Lender: Interest Only Loan = $139,050 (90%) + Rehab loan = $25,000 (16%)

I acquired the property in the name of an LLC but that strategy did not work out for this deal (reason in the refinance section.)

Closed on the property on Feb. 1, 2019.

Rehab.

Rehab was completed on May 1, 2019 after going through three contractors. One lesson learned is to order windows as soon as possible if you're going to need them. I didn't know it takes 2-3 weeks to get windows if ordering them new. Also, a lot of unpreparcostsost showed up during rehab, it's very important to have a lot of buffers in your estimates.

Rent.

Got a tenant on July 2019 @ $2,050/month. I initially did the marketing/advert/showings myself but had to hire Ikos after a while to free myself. Ikos got me very good tenants for half of the first month's rent.

Refinance.

After six months seasoning, I refinanced the property. After several unsuccessful attempts to cash-out refinance the property back into my LLC, I was forced to refinance back into my name because of a hefty additional tax that I am not prepared to pay.

• Appraisal: The property was appraised for $250,000 and I was able to get a 75% LTV with Cardinal Financial (Sebonic). The property is currently on a 30-year loan at 4.75% interest rate. 
• My monthly mortgage payment is $1,291 with a monthly cash flow of about $660/month.
• My experience with Cardinal Financial was not a very good one and very glad they recently sold the loan to Bayview Loan Servicing.

Repeat.

I lost my job in September, 2019 and unfortunately was not be able to pay the 401k loan off. I'm currently looking for creative ways to repeat the BRRR process.

Respects.

I'm adding this "R" for "Respect" to the BRRR process because a tree does not make a forest and a lot of people on this forum has tremendously helped me to make this deal a success. I want to especially give a shout out to @Rich Baer. From my very first call with Rich in the afternoon of Nov. 20, 2018 to my last week call with him, Rich has been a mentor, an adviser, a connector, and most especially a friend. He has invited me to visit projects he's working on and ask questions along the way. He has connected me with reliable contractors, loan officers, and other investors making things happen in the Baltimore area. Thank you Rich and thanks to the BiggerPockets for making all these possible.

I hope this helps. I'll be happy to answer any questions you might have.