First Single Family BRRRR

[Collin Groves]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $140,000
Cash invested: $35,000

My first property started with a BRRRR in a great location. This fixer upper was untouched by the market - for good reason - but in an ideal area. After 2 months working on the property, my first lease was $1,500 for 12 months on a ~$680 note. I was netting $500 a month on this property as I self managed it. I recently refinanced for $205,000 and a 2 pts lower interest rate. Needless to say, I learned as much from this as all of the books and podcast.

Lessons learned? Challenges?

The clear cut takeaway from this project was to fix or improve everything the first time around. I was short on cash early on, so I choose to wait to paint parts of the house, replace doors, tile, etc. The first-time owner headaches it would have saved me to just replace the damaged exterior doors with good, steel doors at the beginning are too many restless nights. As I have grown in this business, these little issues don't bother me anymore. We fix them, move on, but we always improve.