House Hack BRRRR

[Clint Reuter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $15,000

Contributors:
Maria Talasz

Buy, Renovate, Rent by the Room, Refinance (coming soon)...

This BRRRR deal was inspired by the 2023 Bigger Pockets Real Estate conference in Miami after seeing David Greene repeat so many great points about house hacking. I know its the best way to get going in Real Estate and I hadn't done it in awhile, so Step 1 was to find a good property at a great price, and make it a great property (ala Rob Abasolo's and D.G's standing out in a crowd points).

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

Hearing more experienced investors talk about the merits. David Green primarily.

Long term strategy is to hold until it makes sense to sell, and that might be after only 2 years so I can reap the benefits without getting killed in taxes.

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

MLS...with an agent I threw a bone to.

How did you finance this deal?

Conventional with Ryan Morrow (best investor lender I know)

How did you add value to the deal?

Eliminate all popcorn ceilings, repaint everything, new flooring throughout, renovate bathrooms, add a bathroom, renovate the kitchen, improve outdoor living, improve curb appeal, and believe it or not, make the garage exceptionally nice.

What was the outcome?

The plan is to short term rent some rooms, or mid-term, and live in the primary until its doing so well I have to move out and refocus on a previous renovation that has stopped until this one is complete.
Coming to the end of a thorough renovation and the fruits will be arriving shortly.

Lessons learned? Challenges?

Be willing to spend more money or more time, but I've learned I should have spent more money and moved more quickly. I overestimated my ability to get it done more quickly. My rehab is crawling along but I'm doing it at a pace I can afford without outside money and I'm learning along the way (that I probably want to have more momentum on my next similar deal). But its near an end and this house will be top-notch shortly.

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

Ryan Morrow - Lender.