My first ever BRRR in HTX

[Khang Pham]

Investment Info:

Single-family residence other investment in Houston.

Purchase price: $240,000
Cash invested: $17,000

This property is my first BRRR property that was purchased through a turn key company called PIN in Houston. Originally it was intended to be managed by the turn key company GC, however, because of the structure of the contract of the GC I opted out and jumped right into managing the construction myself. There were so many struggles and I did pay 12% interest and 3% points for hard money. I learned so much about construction and there were so many struggles that I had encountered. Overall, I was over budget with $23k and scored $57k in equity. I was able to do a cash out refinance and re-cooped back 30k my money. All in I had $16k in the deal, tis was a definitely a great first deal!

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

I wanted to gain construction knowledge and experience. IT was definitely a lot of HARD WORK

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

I found this deal through a turn key wholesaler. This property is hot because it is next to 2 universities and the medical center. Also next to the metro light rail

How did you finance this deal?

I used hard money lender and then refinanced out with a small local bank backed by Frannie Mae

How did you add value to the deal?

I forced appreciation by adding 900sqft to the structure, turning it from 2/1 to a 4/2, total 1500sqft

What was the outcome?

I gained $57k in equity and cashed out most of my money back with $16k in the deal

Lessons learned? Challenges?

Never under estimate yourself, your brain is triggered to find answer and solutions when you are in a scramble of figuring things out!

[Wale Lawal]

Great first start @Khang Pham I salute your tenacity on this project. 

Yes, new construction is hard but very rewarding if you can stick it through. 

Most people think it's an easy route....very far from easy route.

Congrats and go get the next one.