BRRRR Strategy as well as currently House Hacking

[Michael Jolly]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $190,000
Cash invested: $10,000

Bought this home before either my wife or myself was interested in real estate investment. We purchased it for $190,000 (VA home loan) and have renovated (finished out the fourth bedroom, added a fence, sod the yard) using about $10,000 of our own money and our own sweat and know-how. We are estimating the new value of the house to be about $210-220,000 based off similar houses on our street.

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

We already had the house and were making renovations before real estate investing crossed our minds. We planned on renting it out once we moved in about 6 months, however we were not planning on implementing the BRRRR strategy as we just stumbled upon it recently.

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

My wife actually purchased the house before we were married. She was a transitioning Marine veteran with a solid offer letter and used her VA home loan.

How did you finance this deal?

VA home loan, 0% down.

How did you add value to the deal?

We have finished out the fourth bedroom (offer was $190k with unfinished room or $200k for a finished room) we did it for less than $3k. We fenced in the back yard, only cost was materials. As well as in the process of sodding the back yard, again will only be paying for materials.

What was the outcome?

Still ongoing, we hope to be able to have a positive cashflow of at least $100 as our first rental property.

Lessons learned? Challenges?

The lesson I have learned so far is that I hardly know anything. I have been consuming books, articles, podcasts, youtube videos at an insane rate over the past weeks. Challenges were getting my wife on board with the idea of using this property to get more properties, was able to overcome that using the math and calculators.

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

I will have to ask my wife for her realtor's information to post, my wife enjoyed her experience and has recommended her to other families. We did all of the work ourselves using my father-in-law who lives with us currently, I will ask him if he wants to put his name out there.