First BRRRR Property

[Derek Adkins]

Investment Info:

Single-family residence other investment.

This was acquired using the BRRRR strategy back in Feb. of 2021. It also has a detached garage/apartment that I plan on renovating and operating as a separate rental.

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

No cash out of pocket!

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

I found it through a wholesaler on craigslist.

How did you finance this deal?

Private money

How did you add value to the deal?

Converted the home from a 2/1 into a 3/1 by turning the second dining room into a bedroom. There was a fireplace/chimney that was seperating from the house located in the second dining room that we had to remove and wall off. Renovated the kitchen, new electrical panel, flooring, siding, and interior/exterior paint. This was about a 60% remodel if I had to guess.

What was the outcome?

No money out of pocket! I based my numbers on $120,000 ARV from lack of comps, being in a rural area, and appraisal came back at $160,000!

Lessons learned? Challenges?

Dealing with contractors and the importance of creating a contract and keeping them to a schedule. Renovating/replacing everything that needs it instead of the bare minimum in order to try and stay in line with BRRRR projections.

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

I refinanced this with Extraco Banks, a local commercial lender. I think they have a handful of branches across Texas. Gerald Popp is my lender and he's great! As for agents, I work with a lot of amazing real estate professionals across Texas that I can recommend. Just ask!