Update to First BRRRR Deal

[Michael Clayborne]

Investment Info:

Single-family residence buy & hold investment in Norman.

Purchase price: $121,000
Cash invested: $30,000

First Deal, BRRR strategy/Live-in-Flip. Learned a ton about investing and construction with this property, most importantly to manage expectations, because everything that could go wrong did go wrong, but we got it finished. Now it is a well performing rental.

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

I started learning about real estate investing while in college, and took about a full year in educating myself about the market, how to get started in investing. I decided at the time, BRRRR would be a great way do value add, create equity that could be used to fund the next deal. This deal was going to be the stepping stone to getting more properties.

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

I enlisted the help of a buyer's agent, it was marketed as-is, so we negotiated with improvement costs reductions instead of asking for seller to fix any items.

How did you finance this deal?

I partnered with my parents, they brought the cash to close the deal, I did all the rehab, and management of the rental once it was ready to rent out.

How did you add value to the deal?

We had to gut the house and replace a lot of items, but with sweat equity and befriending tradesmen, we were able to get it done.

What was the outcome?

A well remodeled property, currently rented out.

Lessons learned? Challenges?

Lesson learned, ha. We faced a lot of challenges with this one due to the scope of the project, as well as we made updates some updates that I would find ways to do more cost effectively when given the option to do over. Working full time and then coming to do construction was a struggle, and honestly put us behind schedule, but in the end the sweat equity worked out.