First BRRRR for My Wife and I

[Jeff Kennedy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $30,000

Purchased a HUD Foreclosure and used the Brrrr Strategy and it worked very well. The rehab took 4 Months. We received an appraisal for 147K with a refi at 80% we cleared $3,600 after everything is paid, and cash flow about $350/Month after all expenses.

What made you interested in investing in this type of deal?

Listening to the Bigger Pockets Podcast, and reading the Brrrr book.

How did you find this deal and how did you negotiate it?

We were looking for a property for awhile, and we had several offers in before this one was accepted.

How did you finance this deal?

We used cash for the purchase, and then a locale credit union for the Refi.

How did you add value to the deal?

We took a pretty rough property and made it nice.

What was the outcome?

A good cash flowing property with 300 cash flow and 30K plus in equity.

Lessons learned? Challenges?

We hired a handyman to help us, but we did most of the work due to him being slow. It was a tough rehab and our first one, but we learned a ton.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes I worked with an agent (Dale Stipe with Caldwell Bankers) and LFCU for the Refi.