SMELLY HOUSE - BLRRRRHack

[Christian Abel]

Investment Info:

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

Purchase price: $550,000
Cash invested: $80,000

First Deal = Septic Tank issues, a lot deferred maintenance, shady tenants. 3.5% down with a $10K credit at closing because I was not able to get a clear diagnostic regarding the septic issue. We are living in one side and renting the other side out as we rehab the property. Rehab cost has been about $63K, which is very low considering we have updated everything and fixed the septic issue. I am DIYing the rehab so that we can afford to get it all done.

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

This deal was on the MLS
I ran the numbers, knew what I could pay for it to work for me and then gave the offer. I used a buyers agent whom negotiated the deal from that point on. :)

How did you finance this deal?

FHA 3.5% Down

How did you add value to the deal?

Fixed deferred maint, opened the floor plan, updated kitchens, baths, flooring and fixtures.

What was the outcome?

Purchase Price: $550,000
Down: $17,000
Rehab: $63,000
ARV: $1,025,000 (Estimated)
Gross Rent: $5250
Maint, CapEx: $1,300
Mortgage (Ins, Tax): $2,950
Pure Cashflow: $1,000

I plan to get a HELOC on this property to invest in a deal on the mainland, focused a little more on cashflow until I get out of the rat race. Then venture into markets/properties that see better appreciation.