BRRR method in action; Indianapolis duplex

[Jacob Messer]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $90,000
Cash invested: $105,000
Appraisal price: $250,000

both units needed a complete rewire. So you know how that goes. Got it done and patched everything up.
Trim painted and replaced where it needed it.
Quarter round installed everywhere.
Vinyl flooring all over.

We gutted the bathrooms and kitchens and made them anew (see picture).

Exterior siding and paint, some foundation work, etc.

There are plenty more details;
the takeaway, this place was big and had a ton going on.

Investor was happy with this one (see last pic).

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

You're happy to "have your name" on projects like this.
It was a complex endeavor and was in an area that is getting nicer everyday.

This was a really good buy for the investor and we knew he'd make a great profit on it.

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

He approached us.

How did you finance this deal?

He used the BRRR method to fund it.

How did you add value to the deal?

Facilitated contracts and labor; start to finish.

What was the outcome?

Everyone involved made money.
The investor will profit about $50k when his deal closes.

Lessons learned? Challenges?

The investor sat on his decision to go through with the complete rewire of the house.

Ultimately it was required by law to be handled in some capacity and he decided to go with a thorough solution that handled the problem entirely.

Hindsight is 20-20 but it did take him some time which ultimately stalled the project.

Other than that, we are grateful to have been involved and proud of what we left behind.