First BRRRR (well almost) by the numbers

[Kevin Wilson]

Bought my first investment property last September in Pittsburgh, PA. I reside in San Diego, CA and never set foot in Pittsburgh so it seemed a little weird.

Details:

SFR 4/2 on the MLS

Asking: $50K; Offered: $40K And ultimately agreed and purchased for $44K

Used conventional financing with 20% down

Rehab cost was $36K

Total money in including rehab, down payment, closing costs and holding costs: $55K

Rented 4 months after purchase for $1275

Refinanced into a new 30 year fixed at 4.5% and was able to get $53K cash out after an appraisal of $125K

Currently looking for the next deal to finish out the "Repeat" phase of the BRRRR; hence the almost.

Definitely learned a lot through this process everything from financing to working with contractors to property management companies. Biggest piece for me would be perhaps developing a contractor agreement on my end that could have prevented some hiccups down the road; ultimately the work was done well but drawn out and demands for payment outside of the quoted schedule.

I’m looking to use hard money for my next deal in order to learn the ins and outs of doing so.