First Deal - 3 Bed / 2 Bath BRRRR in Birmingham, Alabama

[Pope Lake]

Investment Info:

Single-family residence buy & hold investment in Birmingham.

Purchase price: $70,000
Cash invested: $35,000

First investment. 3 bed - 2 bath, 1860 sqft SFR. Currently executing a BRRRR in the greater Birmingham, AL area. Investment requires basic interior and some exterior cosmetic renovation. Once renovated will rent out then refinance.

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

I was first looking at doing a buy and hold in Birmingham, but then as I learned more about different strategies for SFR investing, I came to realize that the BRRRR method is the most effective for forcing appreciation while achieving the highest cash on cash return.

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

I found this deal on the Alabama MLS and through the help of my Agent @Rob Drum.

Shout out to Rob for great communication, providing invaluable knowledge, and having a well-credentialed list of vendors and connections that enabled me to gather the other members of my team. Overall great experience working with Rob.

How did you finance this deal?

Short-term, hard money financing. Covers purchase price and renovation costs. I had to put down a "skin" amount roughly equal to 20% of the all in deal price.

How did you add value to the deal?

I will add value through having basic cosmetic interior and exterior cosmetic work completed on the house.

What was the outcome?

Still in process - TBD. But hopeful to achieve an ARV of 135k-140k and refinance at 75% LTV.

Lessons learned? Challenges?

Gather ALL members of your team before trying to execute a iterative strategy like the BRRRR. Also do prep-work such as getting a pre-approval from both your short term and long term lender.

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

I would highly recommend @Rob Drum in who's a high-performing agent in the greater Birmingham, Alabama area. As aforementioned, Rob has the knowledge, communication ability, and care to guide you throughout your investment process. Not to mention, Rob is well connected to a highly qualified network of vendors that can add immense value.

[Pope Lake]

Would also recommend Groundfloor for hard money needs. Had a great experience with Paul Cosentino - dm me for contact details.