How To Turn 1 Unit Into 8! (BRRR Example)

[Brian Ellwood]

Below is a link to a house I bought in 2017 for 55K. 

Put 15-20K in fixing it up.

Rented for 3+ years at around $1,100/month.

Collected approx 12K in net rent....

Just listed it today at 149,900 to sell fast....

Net profit expected to be 75-80K...

This profit will go in a 1031 exchange (to pay no tax on it)...

In the next few months I'll use that cash as a 25% down payment on a multifamily building...

So i'll be looking at maybe 8 unit buildings around the 400K price point.

So I'll be taking one unit and turning it into 8!

Also, when I bought this in 2017, I used private lending to take the deal down (and pay for some of the rehab)...

So I needed very little cash to get into it.

This is the power of:

1) Learning the process of buying rentals

2) Picking a great market to buy the house in

3) Holding onto it for a number of years

When you see an investor who has hundreds of units, you probably ask "how in the hell did they do that?

"It's really just a series of moves like this that, over time, builds their holdings and their wealth. 

Hope seeing this example was helpful for you :)

https://www.realtor.com/realestateandhomes-detail/803-Fleming-St_Columbia_TN_38401_M84875-89571?fbclid=IwAR0ynQnjZylnjqJJWtRqOsdxiBrETwhf5kft978oWSWMr0T3UDMl-Ls7jP8