Pictures and Numbers from my most recent Brrrrr

[Matt Jones]

Hi BP!

I thought I would share the pictures and numbers from my most recent BRRRR project in Pensacola, FL. I picked this one up from a wholesaler(first time buying from one) back in January. The wholesaler agreed to take my offer verbally but never returned the signed paperwork and ended up taking a much higher offer. Rather than up my bid or get overly upset I just let him know that I was a serious buyer and that if anything happened where his contract fell through I could close quick. Sure enough, the wholesaler reaches out and his deal fell through so I end up pick up this 2/2 townhouse for $39,500. I put new tile flooring throughout, added a closet to make a 3rd bedroom, new appliances, new paint, new counter tops, refinished cabinets and added new hardware, gutted and updated bathrooms, landscaped outside plus lots demo, fixed a roof leak, sheet rock work ect.. for $13,500. My total investment is right at $53,000. I used a contractor that had done some smaller jobs for me before but nothing this big. He hired some additional help and said it would take him a week(I estimated 3-4) to finish. It took him 6 weeks(at least he was cheap). It rented in less than a week for $950. Now that it's occupied I am in the middle of the refinance and it looks like I will be able to pull out most if not all of my money. I'm going to have the outside vinyl sided which will be the only cash I have left in the deal.

Actual Monthly Expenses:

Mortgage Principal & Interest: $380

Monthly Taxes: $68.92

Monthly Insurance: $63.75

Cap-Ex: $95

Vacancy/Credit Loss: $47.50

Property Management: $50

Total Expense including estimate for vacancy and cap-ex: $715.17

Rented @ $950 per month

Expected Cash Flow: $234.83

Living Room:

Master Bed/Bath:

Under the cardboard box in the pictures were about a hundred cigarette burns in the carpet...

Between the 5 people and 3 dogs living here when I bought it there wasn't a blade of grass in the back yard:

Still haven't done the vinyl but it sod does wonders and it only took 1 pallet.

 Kitchen:

Thanks for reading, I look forward to your questions and comments below!

[Matt Jones]

@William Allen  West Pensacola, not too far from NAS & Corry Station.  I was shocked to find a major shortage of 3 bedroom rentals in the area and that rental rates were shooting up.  It rented so easily that I wish I had priced it at $1k per month.