18 plex brrrr strategy!

[Jack McWatters]

Hey guys I just put an offer on a 18 unit building cluster, the owner inherited the property from his parents, and wants to sell the property off he is using an agent to represent him and they have actually agreed to the idea of seller financing.

My offer is much lower than what he wanted for the property, and I expect a counter offer to my offer, but I view it as an amazing BRRRR strategy. There are 15 1 bedroom 1 bathroom apartments and 3 2 bed 1 bath units, they are all very different in rents but average about 600 for the 15 units and about 700 for the others. Even in the area it's at, I believe I can moldy update some of the units and increase the rents for the singles to 700-800 and the other units 800-900 based on the area. I have a new property manager that I know who is amazing and is willing to work for me if the deal closes, decreasing my stress and costs for management. The utilities are paid for by the owner and the only separately metered item is the electric. I still thing I can bill back the water sewage and gas to the tenants. And maybe keep rents close to the same and raise them yearly or according to laws.

I also because I am newer to investing, I’m trying to offer a buddy who is interested in real estate the opportunity to invest in the deal for the down payment since it is a little bit larger than I can do, After about 6 months to a year I’m hoping that I can add enough value that I can then refinance the deal and pay off my investor/s and the seller.

I need some BRRRR professionals to help me out here!