Good morning! I wanted to share a story of the first rental our family purchased this past February. I owe it all to Bigger Pockets and the BRRRR strategy.

My brother-in-law (realtor) found a house that was basically in shambles. The previous owner was just looking to get out with the property as is. This property was in terrible shape. Rentable neighborhood, but the amount of work needed was intense. He purchased the property for roughly $45k and wholesaled it to me for $50k. The tax appraisal (for what it is worth) was listed at $69k. 

I bid it out, and the best bid for rehab was $17,200 with an estimated time frame of 4-5 weeks. We identified the property February 7th. I had planned to put 20% down and close in 30 days, but we decided to ask my mother-in-law to provide us the cash to close immediately. She agreed on the $50K at 20% annual interest (high, but we obviously knew we'd refi within a month).

I found a local bank that was willing to loan 85% of the ARV. So after the appraisal came in at $105k, we assumed a bank loan of $87k on 5 year fixed at 5% that will adjust after 5 years (not completely ideal, but we'll take it on this deal).

The renovation took only 19 days and was only $250 over budget.

The purchase price of $50k combined with the renovations of $17,500 (after all said and done) plus $1,000 as "interest" to my mother in law for providing the funds saw us receive a check for $18,500 at closing the first week of March. Assuming the appraisal would come in around $95k, we were surprised to find out the appraisal was much higher at $105k. Due to this, we considered paying $10k towards the loan balance to increase cash flow, but the loan payment would have only decreased by about $20/month. So we just decided to hold the cash and try to do the same thing on 2 more this year rather than just one.

Bottom line is we found a tenant within the first week of marketing paying $1,100 per month cash flowing at $192/month after prop management, taxes, insurance, P/I while we also have an extra $15,000 of investment capital after cushioning our "Rental Savings" Account for repairs. We ended up not having to use a single dollar of our own money, and we now have an additional $15k in the bank for future deals and a cash flowing property all created within a 28 day period.

The BRRRR method wasn't going to be utilized originally, so we owe everything to family that was able to locate a gem and provide the financing to close quickly then refinance. After the project was completed, I asked my brother-in-law to find me another one just like that. His response verbatim was, "I can promise you'll never find another deal like that in your lifetime." I asked him why he thought that, and his response was, "Because I'm going to buy them from now on!" We'll see : )