Our First BRRR & House Hacking Home

[Megan Lamke]

Investment Info:

Single-family residence fix & flip investment in Columbia Heights.

Purchase price: $109,000
Cash invested: $10,000
Sale price: $274,000

5+ bedroom, 2 bathroom completely renovated home in Columbia Heights, MN. This was our primary residence that we bought in 2011, house hacked with our professional rugby teammates and then did the BRRR strategy to help us invest in 100+ unit real estate syndication. We bought this home for $109,000, paid off the mortgage and sold it for $274,000.

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

We were looking to get out of debt quickly using Dave Ramsey's Financial Peace University principles. We wanted as many bedrooms a possible so we could rent them out to our rugby teammates.

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

We bought it in 2011 at one of the lowest points in the market. We looked for properties within walking distance of our rugby field. We negotiated by using a licensed real estate agent.

How did you finance this deal?

Conventional mortgage 20% down.

How did you add value to the deal?

We renovated the kitchen, both bathrooms, created a master suite, new roof, new gutters, new landscaping, and did some minor cosmetic updates to the whole house (paint & trim)

What was the outcome?

We paid off the mortgage and profited $274,000!!!

Lessons learned? Challenges?

Having formal lease agreements with teammates and family members is essential. Also using paypal reoccurring payments for rent was a huge time saver.

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

yes we worked with my uncle who is a licensed real estate professional and then helped me because a licensed real estate agent