1st-time OOS BRRR Success!

[Bret Winegar]

Hello BP, 

I am just wrapping up my first ever real estate deal.  I am from Utah and am about to complete the refinance on my first brrr in Indianapolis.  Here are some details: 

• When:  I Purchased the property early in July. Rehab was finished mid August and the property rented in September.  Refinance was just completed (late September)
• Location: Littleflower area, Indianapolis.  C neighborhood with some potential for appreciation/gentrification. 
  
• Investment Type: 2 Bed 1 Bath SFR.
• How did i find it? Listed on MLS. I walked through the property on Labor day weekend.
• Purchase Price: $30K
• Funding: HELOC funds from equity in my primary residance
• Rehab:  New roof, floors, paint, bathroom, kitchen, appliances, and some concrete jacking to help with basement drainage issues.  Cost: ~$25000
• Total Investment ~$55000
• Rent: Rented @$725/month
• Refinance:  I used the delayed financing exception to cash-out my initial investment.  I just signed the papers today.  I put ~$24K into a rehab escrow account when i purchased the property, so i was able to pull all that money back out.  The initial appraisal came back at $61000, but after i challenged the appraisal and pointed out rehabbed comps in the area, the appraisal was changed to $90K.  I was able to get a cash-our refinance for 58K and cover the closing costs of the refinance.  
• Cash-Flow: after all expenses (mortgage, insurance, taxes, PM, capex and repairs the property will cashflow ~$150/month
• Cash left in the deal: rehab went over budget so there wasn't enough money in the escrow account to cover the entire project.  We'll end up sith ~$1600 left in the deal.  If we were to wait until January (for the 6 month seasoning period) we would have been able to pull ~9K out of the deal.
• Repeat: in-progess.  i'm working on the 2nd and 3rd deals now.

I am partnering with my brother-in-law on this property 50/50.  We decided for our first venture out of state that we could split the risk and both learn as much as possible on a long distance deal.  We got lucky and found a fantastic contractor who we can trust. We have a great realtor who is an investor herself and is tied in to the wholesellers in the area.  Finding a lender who understands delayed financing and is willing to include the rehabs costs as part of the initial investment was difficult.  We also went over-budget on the rehab.  

I'm super excited to get this first property done.  The goal was to learn as much as possible and hopefully not have to put up too much money.  I don't think i could have asked for a better result!