My first BRRRR! (Single family in Gilbert, AZ)

[Nick D.]

Investment Info:

Single-family residence buy & hold investment in Gilbert.

Purchase price: $175,000
Cash invested: $220,000

Single Family BRRRR in downtown Gilbert, AZ. Bought off market and did a full remodel. Started with a 3bd/1ba, modified the floor plan to a split master 3bd/2ba, added laundry and relocated kitchen.

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

Location, Size, Condition & Potential

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

Made offer site unseen covering all seller concessions.

How did you finance this deal?

Conventional 20% down

How did you add value to the deal?

Full remodel, built out carport to a master suite w/ new bath giving the home a spit floor plan with large rooms and an additional bath. Added in unit laundry. Removed interior walls opening up the living space and giving a very modern touch.

What was the outcome?

Became a great cash flowing rental

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

Christine Ashley with Kelly Cook real estate group KW.

[Nick D.]

Hey @Andrew Daus, Great questions! I didn't clarify that too well. I purchased with a conventional and 20% down the 220,000 is my all in after repairs. The ARV on this property is somewhere around 310k-320k. The home was probably considered livable it was mostly cosmetic (hoard). Buying it with 20% down and well below the comps I was able to waive the appraisal.

I am currently on the second "R" and just listed this week at $2,200. I want to get it rented before refi so I can better know my numbers and know how much I can pull out of it and still cash flow. 

No worries on the questions, I am just getting into this myself. I have been "house hacking" without knowing it for the last 7 years. Purchased my primary and have always had a roommate paying my mortgage. After finding BiggerPockets about a year ago i discovered that I was off to a good start without knowing it and I am now actively pursuing the real estate path to financial freedom.