2 Unit Brrr in Pottstown PA

[Chris Good]

Investment Info:

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

Purchase price: $83,000
Cash invested: $30,000

2 Units, first floor has one large 1bd 1.5ba with attached garage. Second/third floor 3bd 1 ba

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

It was in a market I already invest in and it needed repairs.

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

It was on the MLS and friend of mine had it under contract for 90K and wasn't able to come up with the financing so he said I could have it if I wanted. This was right after the world shut down so I was able to use that to negotiate it down to 83K. I also paid my friend 2K as a "refund" for the deposit he lost when he backed out of the deal.

How did you finance this deal?

Hard money, then refinanced and pulled out what I had invested into it with equity to spare which I used as collateral to purchase another property.

How did you add value to the deal?

Renovated the 1st floor apt, painted the exterior, built new porch deck, added boiler and some other small things.

Lessons learned? Challenges?

This project took several months longer then it should have. I guess the lesson would be to be sure to have a very clear scope of work for your contractor that includes a completion deadline.