Slow BRRRR in Fayetteville, NC

[Derrick Lind]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000
Cash invested: $22,000

My first real estate investment was a slow remote BRRRR. Totally stressed out when starting out, but everything worked out and I repeated the process a few times since. Five Pilllars realty was a key player for this project. I could not have done it without them. Thanks guys!!

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

I wanted to get into real estate investing. Listened to BP podcast with Brandon and David. Thought a BRRRR would be best approach.

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

I used David Greene's remote investing method. Build your team first. I hooked up with Five Pillars realty in that market. They were recommended by BP and some BP investors that I talked with. The deal was on market. I know.... "there are no deals on market." Not true. Some times you'll find something good. A strong cash offer helps with getting you selected.

How did you finance this deal?

Cash followed by cash-out refi.

How did you add value to the deal?

Relatively minor interior renovations. Paint, kitchen/bath touch ups, etc. Nothing major.

What was the outcome?

I got most of my capital back at the refi. Had I fully seasoned it, I likely could have gotten the full amount back. The appraisal came in at $120k where the purchase price was $78k and $22k reno cost for all-in of $100k. Rates were good at the time and cashflow is good. it was a super deal. This market is typically only slow appreciation, but recent market forces have worked in my favor and I've enjoyed a good amount of appreciation too.

Lessons learned? Challenges?

1. Don't move slowly. I took too long deciding on the contractor and getting them setup.
2. When you buy right, there is a lot of forgiveness in the process.
3. Don't wait to get started. I should have bought rentals many years before. I now tell everyone that I know that they should too.

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

Five Pillars realty was amazing. True rockstars!!!
Homefront Preservation did the renovations and they were excellent. Straight shooters in terms of pricing and scoping.
Alotta Properties has been my PM since day one and they have been great. Despite various tenant issues.