My First BRRRR (attempt)

[Bobby Valcin]

Investment Info:

Single-family residence buy & hold investment in Leesburg.

Purchase price: $59,900

My first BRRRR!

This is a 3/2 that was converted into a 4/2. It was purchased through a hard money lender for $59,900 with a rehab budgeted at $41,000. I had to put 10% down on the total amount, plus the closing costs and lender fees. About 20k total.

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

I generally like to invest in properties that need a total gut job. There is something about the process of remodeling a home that I really enjoy.

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

I found this deal through a wholesaler. The deal had recently been reduced by 10k, which made it the right price point for me.

How did you finance this deal?

I used a hard money lender and paid 10% down on the purchase and rehab.

How did you add value to the deal?

I added an extra bedroom.

What was the outcome?

I didn't end up pulling out the amount invested during the refinancing like I planned, however, I did end up cash-flowing well.

Lessons learned? Challenges?

I need to be more thorough with my due diligence. The original contractor was definitely the most challenging part of this. I ended up paying them an extra 10k, and they took way too long to complete the roof replacement.

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

Lima One Capital, Movement Mortgage

[Bobby Valcin]

@Tyler Gibson Good questions. I refinanced at 75% of the ARV (145k), which was a little over $108k. I'm getting $1400 in rent. In a sense, the numbers the wholesaler game me were only off by a few thousand, however, I also didn't necessarily have to rehab the property to the extent that I did. Going above and beyond also resulted in the ARV being 15k higher than theirs, and the rents being $200 more than their estimate as well. I ended up adding an extra bedroom.