My First BRRRR

[Chris Pohlson]

Bigger Pockets has been instrumental in helping me get my REI business off the ground. I would have never been able to complete this transaction without the help of the BP community. The seller of this house found me through a cash offer advertisement I had posted on craigslist. I was super scared to buy it after the inspection and I almost let the deal walk. I'll never forget pulling up the carpet and watching bugs and worms scatter! Thankfully I had some great colleagues in my network that encouraged me to move forward.

Before

After

Here are some quick numbers:

Purchase Price: $10,000 (negotiated down from $15,000 asking)

Rehab: $35,000

ARV: $75,000

Rent: $880/mo

Closing/Holding Costs: $2500

Projected monthly cashflow (unleveraged): $500/mo for a 12.5% cash return

If all goes to plan, I'll be able to refi after my 6 month seasoning and get all my money back and still cashflow about $266/mo.

I'm happy to share more details if anyone is interested.  

I'm so grateful for this community!!!  THANK YOU!