BRRR - East Tampa Bungalow

[Eric Hildebrand]

Investment Info:

Single-family residence other investment.

Purchase price: $95,000

Cash invested: $80,000

Contributors:
Ingrid Poole

Full renovation. New roof, plumbing, electrical, updated kitchens and baths.

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

We want to build our investment portfolio by renovating homes then refinancing to hold.

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

Off-market through our wholesaler

How did you finance this deal?

Line of credit

How did you add value to the deal?

Full renovation. New roof, plumbing, electrical, updated kitchens and baths. Interior paint, new drywall, texture, flooring.

What was the outcome?

Overall

Lessons learned? Challenges?

LOTS of challenges. Our main contractor got arrested at one point and we had overpaid (of course). The electrical panel caught fire. It seemed like everything that could go wrong, went wrong. The timeline and budget went out-of-control and we should have looked into refinancing way sooner to reduce our carrying costs. Even after we got the renters in, we've continued to have issues (plumbing lines swapped - under warranty; electrical in back of house didn't work - we never checked back there and didn't know there was an issue until renters moved in; bought used appliances and had several warranty issues and just had to buy a new dishwasher.).

For my wife, who managed the project, it was a huge undertaking and now we're doing 2 more this summer. We must be gluttons for punishment :) 

Lessons Learned: Don't put all your eggs in one basket and be a lot stricter on the budget and timeline.

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

My wife, Ingrid Poole, is a real estate agent and manages our rental portfolio.