BRRRR in Urban Core of OKC

[Alyssa Dyer]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Oklahoma City.

Purchase price: $70,000
Cash invested: $42,554

Contributors:
Curtis Kupfersmith

We bought this house to BRRRR about a year ago. We bought it for $70,000. Put about $130,000 into it. Refinanced it for $250,000. Lease it out for $2,400/month.

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

We love the area, and already owned a couple in the neighborhood. The price was really attractive. The numbers made a lot of sense.

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

This was a lead off our direct mail. The seller was tough to negotiate with. I honestly think we got this deal because he had tried to sell it and others likely didn't want to keep negotiating with him. The property was in really bad shape though, so he knew he's have to sell low.

How did you finance this deal?

Commercial loan with First Liberty. 6 months of interest only, 5 year balloon.

How did you add value to the deal?

Lord, it'd be easier to mention what we didn't do, haha! Foundation work, new HVAC, windows, siding, roofs, gutters, paint. Refinished and replaced cabinets as needed, installed new hardware. New lights, fans, fixtures, locks, knobs, and house numbers. Several new water tanks, stoves, and refrigerators. The landscaping, shrubs, trees, and flower beds were all totally removed. We put new seed down for grass and rebuilt several parts of the fence.

What was the outcome?

Couple setbacks with budget and timeline, but all in we did well!

Lessons learned? Challenges?

The project went really, really well for the first half. On the tail end we had a pipe bust in the attic which flooded all the way to the ground floor, essentially destroying the new drywall, paint, and several light fixtures. It was tough to get the contractor to commit to a new budget and timeline. We wasted too much time in this transition and we should have removed our contractor sooner.

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

Heather Howerton at First Liberty did our financing and was 10/10, as always!