Anyone want to share their success with BRRRR?

[Michael A.]

Looking to hear from investors who have had success with BRRRR. Also, if anyone has used the BRRRR method to acquire an apartment complex.

[Matthew Masoud]

So in January, I purchased a 6-unit for $220,000 in the midwest. It was an all-cash purchase.

Rents were WAY below market at $450/unit. (that's why the low purchase price, NOI was garbage). Units needed upgrading before rents could be raised.

Spent $30,000 in total getting all the units rehabbed and brought units to market rents at $775. I also brought down expenses through operational efficiency.

As a result, I SUBSTANTIALLY raised the NOI.

Bank appraised the property at $340,000 and I withdrew the $250k I invested

The interest rate is a bit high at 6.05% but the property will still cashflow nearly $1,500/month after all expenses.

I essentially purchased this property for free $ 0 left in the deal.

Also under contract for a 10-unit that I plan on doing the same thing. Scared money don't make money!

I moved from SoCal to the midwest to do this so it feels good that sacrifice pays off.