My First BRRRR Investment Property - Tulsa, OK

[Tom O'Stasik]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $54,000

Bought a 3bed/1 bathroom house off market in rough shape. It needed a new HVAC, plumbing issues, electrical issues, floors, walls, doors, paint, and I was converting the garage into an additional bedroom/bathroom. I was using a handyman attempting to be my GC for his first time. Lots of lessons were learned. I expected the rehab to take 60 days and cost ~$30k. It took 143 days to complete the rehab. This 4/2 1350sqft, built in 1960 home, appraised for $145k and a cash-out refi for $116k.

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

I wanted to get my first BRRRR under my belt. I knew I had a deal with the purchase price.

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

I'm a real estate agent. This was a lead that I thought wanted to list the property for sale on the MLS. It was clear the house was in no condition for that. They were facing a looming foreclosure.

How did you finance this deal?

I used my own cash

How did you add value to the deal?

I fixed up the property. New HVAC, electrical, plumbing, paint, doors, and floors. Added a bedroom/bathroom in the garage. Created a laundry room in the breezeway.

What was the outcome?

Rented on a one year lease for $1350/m

Lessons learned? Challenges?

Lots of painful lessons with contractors. Less expensive is not necessarily the way to go. I will do more in the vetting out of a contractor before I make commitments. I documented my journey on Youtube. Here's the final video https://www.youtube.com/watch?v=Tl6q7gV94E4

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

I am the real estate agent ;)

[Ben Scott]

Congrats @Tom O'Stasik on seeing it through. And thanks for sharing the hairy part of this business. I feel like all we see are the wins and never any of the struggles to achieve those wins because folks don't want to admit mistakes were made along the journey.