Triplex BRRRR Norwich

[MIlton Monzon]

Investment Info:

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

Purchase price: $100,000
Cash invested: $90,000

Distressed triplex purchased through a wholesaler. Tons of work needed and inherited tenants taking advantage of their landlord. Many months behind rent with no intention to pay. Bought as my first BRRRR and got to apply everything BP has taught me so far. When bought it brought in 500$ a month. Now brings in 3400$ and after all expenses and refinancing at 7.5 rate cash flows 1000$ a month.

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

Bigger Pockets and generational wealth. Wanted to take the leap and try out a BRRRR.

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

From a wholesaler on fb REI group for CT area. Offered to purchase instead of creative financing. At the time using a hard money lender was a better option to fix and rent faster.

How did you finance this deal?

Hard Money Lender RCN Capital. At the time it was 10% down.

How did you add value to the deal?

Brand new mechanicals, Roofs, cleaned the siding, new vynl fence, LVP in all the units, pain, appliances, bathroom, and kitchen upgrades. Home was a mess. Trash piled up everywhere, not maintained for many years, and we used a rehab loan and stuck to our budget as best as possible.

What was the outcome?

Originally only needed 80k of work into it but contractor that scammed me on a previous deal was also leading this one and ran off with 10k from here so that hurt. Expected 220k ARV and it came back at 255k ARV. Refied at 75% and recovered all that money and now have a strong triplex with happy tenants that meet all the criteria needed for my rentals.

Lessons learned? Challenges?

Hmmm same as last. Was very strict on my contractors bids, interviews, and who I trusted. Biggest thing I did learn was not to cheat my own rules and maintain a strict budget and criteria for deposits, payments, and verifying work is completed by contractors.

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

Yes Brenda Engel amazing from New London area. She was my boots on the ground while I was traveling with the military. She’s an amazing agent and very helpful at recording videos and taking pictures for me.

Also used RCN Capital. This was deal 2 with them out of 6 that we have done now.