First successful BRRRR

[Austin Harvin]

This is my first post on BP. I have seen others post about success on BRRRR so I apologize in advance for adding another. I just wanted to share another story of how this strategy can help those of us who need our money to work over and over again for us. While this is not a home run by any means, I do think it's a solid double. Here are the stats on the house:

Grand Rapids, MI

2bed 2bath 1100sqft C neighborhood

List price 135k

Purchase price 120k (121k appraisal)

We put 30k down (25%) and paid roughly 6k In closing costs.

My wife and I are pretty handy so ALL of the work was done ourselves over the course of 3 months. We did a full cosmetic remodel along with adding 2 more bedrooms and upgrading electric throughout. We had it rented immediately for $1600/mo.

We started the refinance process so that we would close exactly on the 6 month seasoning date. We just got the new appraisal back and came in at 164k.

So here’s our cash back breakdown.

36k acquisition costs

7k rehab

1k carrying costs

44k total invested

28k cash back refinance

16k left in the project.

New PITI 1024/mo. With rent at $1600 this leaves plenty of room for cap ex, maintenance etc.

So, like I said, not a home run but we are pleased with this being our first deal. Thanks for reading guys!