1st BRRR - Absolute Homerun

[Ronny Crawford]

Investment Info:

Single-family residence other investment in Dallas.

Purchase price: $54,000
Cash invested: $17,000

BRRR - Refinanced at $135,000. Cashed out profit and held as Long Term Rental

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

I originally bought this property as a Buy / Fix / Hold before I ever heard about the BRRR strategy. I learned about the BRRR strategy watching a webinar on BP while I was in the process of the rehab. After waiting the 6 month seasoning period, I was pleased to learn the ARV was $20,000 higher than I originally thought.

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

I found it on an Online Auction site.

How did you finance this deal?

It actually qualified for traditional financing at the purchase price of $54,000. I put 25% down.

How did you add value to the deal?

Enclosed exterior door (that led to Master Closet???), Re-built deck, Built fence around 3 sides of property, new flooring, new paint inside and out, new hardware, two exterior doors, repaired buckled concrete walkway, repaired dry rot around windows and doors, new appliances, converted above ground pool area into a gravel fire pit, filled in large sink hole in the yard, and landscaping.

What was the outcome?

$135,000 ARV

$101,000 Refi - Cash Out
-$ 54,000 Purchase
-$ 17,000 Rehab
-$ 6,000 Closing costs (purchase and refi)

$ 24,000 Net Profit
$ 297 monthly Cash Flow (Infinite ROI)

Lessons learned? Challenges?

Sometimes there really is a diamond in the rough. My largest Challenge has been finding deals since this project. This was my first BRRR and was an absolute Home Run... I have been measuring deals against this project ever since and has made it extremely frustrating not being able to find anything like this again.

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

My wife, Christy Crawford, is a Realtor and owns a property management company that manages this property.