I just wrapped up my first BRRRR this week. It is getting rented out now for $1200/month on each side. I did a full gut job renovation on this property and added nearly $80K of value ($225K in $305K appraisal). My expenses will be about $2,100/month including debt service, all expenses and vacancy. I also had to have flood insurance which was a last minute surprise:( I will cashflow $300/month. More if I can amend the flood map and remove flood insurance in the future.

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

I love the idea of recycling my money. I want to replace my income with real estate and the BRRRR method seemed like a good way to get there faster than buying a turnkey investment.

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

My Agent found it off-market and brought it to me. We were able to negotiate the price lower after the inspection since it was in worse condition than we originally thought. We started at $75K and closed at $60K.

How did you finance this deal?

I used cash to buy the deal and to renovate as well. I used some of my 401K and some of a HELOC on my primary residence to get through all the rehab.

How did you add value to the deal?

We did a full gut job renovation. Basically everything is new; roof, siding, windows, electric, plumbing, HVAC, kitchens, bath, flooring etc. It was a big job that was complicated further with a bad tenant at the beginning and COVID delays along the way.

What was the outcome?

I was able to finance 90% of my money out of the deal and it is being rented for $1,200/month with residents paying all utilities.

Lessons learned? Challenges?

There were a lot. I now know to check the flood plane when looking in this area. I now know what to expect in refinance charges. I know to make the seller evict the troubled tenant they put in there if they havent paid rent in months. Always verify any information that could cost you money down the road, even when you trust the people as they can miss things and make mistakes. I will work on putting a better process in place to work with my GC in the future.

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

Yes Remington Lyman was my agent and is awesome. I have been using ERA realty solutions for my PM and have been mostly pleased with them. I used Chris Wharton of First Ohio Mortgage for my lender. I thought the costs of the refi were high, but that seemed to be true of all lenders I talked to. Chris was easy to work with, is knowledgeable and is great for investors.

Casey Christensen

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First BRRRR completed

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