How to BRRRR with tenants

[William Amiteye]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $55,000
Cash invested: $20,000

BRRRR

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

Price was right

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

Off market. Reached out to owner who owned property opposite one I already had. First time she said yes she could consider selling. First, she agreed to sell, then a month later said no, then came back a month later and said yes. She then said she had another one that she could sell together with the initial one.
We closed the deal and we made off really well on both via BRRRR method.

How did you finance this deal?

Hard money at 8%. We took 4 months on both properties to buy, fix and refinance

How did you add value to the deal?

One unit had an empty apartment upstairs so we pretty much rehabbed the entire upstairs unit. The downstairs unit we fixed few issues and left it at that. We were able to triple the purchase price after refinance.
The second unit had 2 tenants on both units. We rehabbed both with tenants inside. We tripled the value of that as well. This was a good purchase!

What was the outcome?

we tripled value for each unit

Lessons learned? Challenges?

You can BRRRR a property with renters inside if they are willing to work with you. Win win!

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

no