Sedro-Woolley BRRR That Changed My Life

[Matt Joplin]

Investment Info:

Small multi-family (2-4 units) buy & hold investment

Purchase price: $290,000
Cash invested: $95,000

A BRRR investment that was our personal residence during the remodel. The home is 2200 square feet with 3 bedrooms 3 bathrooms, and a 600 square foot permitted mother-in-law apartment. My wife, 2 young children, and I lived in the 1 bedroom 1 bathroom apartment during the remodeling process which conveniently took place during the COVID lockdown. We thankfully survived and came out stronger on the other side.

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

I love BRRR investing and House Hacking. Using a loan for a personal residence makes obtaining financing straight forward and easy convenient to get.

The existence of the 1 bedroom mother-in-law apartment which we intended to rent was definitely something that caught our attention.

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

I found the house on the MLS. The house had a weird layout that made it not very functional. Under the apartment was an attached 600 sqft unfinished utility room that was divided down the center by a wall. The laundry room was accessed through a bedroom and there was only one bathroom downstairs when purchased. The whole house also needed a cosmetic update.

The market was competitive when we purchased but these factors helped to make our $10k under list offer with no inspection work.

How did you finance this deal?

We used a conventional 20% down loan from a local bank and financed the rehab personally from the proceeds of other real-estate investments.

How did you add value to the deal?

I redesigned the layout of the home and redid everything making it essentially a new home.

What was the outcome?

We pulled cash out of the deal using a refi and have the house now rented to wonderful tenants and we are cash flowing $1000 / month. We then used the cash from the refi to help purchase our dream house in the San Juan Islands. Our current home is on 5 acres and has a second home on the property which is rented and paying our mortgage for our primary residence.

Lessons learned? Challenges?

BRRR investing and House Hacking can change your life. I am 4 BRRRs + House hacks over 7 years into my investing / rehabbing career and I have pushed, sacrificed, and gritted my way to a position where my rental properties are now taking care of me and providing me with financial independence.

In my next phase of my investing life, I will work to find partners and leverage tasks to others more. I have learned so much taking everything on alone but I am eager to grow exponentially with help