How I’m making over $100k in Equity in 3 Months!

If you remember earlier this year I flipped a home with my best friend!

Shortly after we close the neighbor next door connected me with the another neighbor that was interested in selling his home.

After doing a walkthrough with my husband we discovered that not only was there 3 bedrooms and 3 bathrooms but there was an opportunity to turn one of the larger bedrooms into an 4th bedroom and the was also an opportunity to convert the basement that the current owner had been using as a barbershop into an additional unit!

We purchased the home with a hard money loan for $235,000 and put 5% down. The hard money lender has given us a $79,000 renovation budget and we are hoping to only use $50,000.

Some ways that we plan to save money on the renovation is instead of hiring a General Contractor to hire the sub contractors and manage the renovations we decided that we can save money and do it ourselves!

As you become a seasoned investor you can develop a network of subcontractors that you can hire yourself instead of going through a General Contractor. GC’s often charge what we call a “Mark up” when they hire subcontractors for you and on top of that they often charge a contractors fee as well.

By managing the project ourselves we are savings a lot of money!

Although this works for us I would not recommend this for a person just getting started that hasn’t completed a renovation or that doesn’t have the time to visit the job site everyday.

Once we finish with the renovations we will Rent #Magnoliahome2 or place it on Airbnb. Once that is completed we will refinance out of the hard money loan to a 30 year fixed loan and pay our hard money loan off plus the 5% that we put in! That will give us $140,000 in equity with none of our own money out of pocket!

This method of investing is called the BRRRR Method! Buy, Rehab, Rent, Refinance, Repeat.

This Method has helped me purchase over 6 properties this year alone.

Have you tried the BRRRR method before? Tell me all about it! Also as always, what questions do you have for me?