6-Unit Multifamily BRRRR

[Kelly Iannone]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $320,000
Cash invested: $171,000

Acquired distressed 6-unit to BRRRR. Fully vacated the building, completed a full gut renovation, stabilized with vetted market rate residents, and excited a cash-out refinance. Left $171k in the deal largely due to the appraisal calculating property taxes at market rate rather than our lower locked in rate due to acquiring through a land trust (for estate planning purposes). Final apprised value was $650k (expected $750k but appraisal calculated taxes based on market rate which is $8k above current tax rate).

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

Saw the value and efficiencies of investing in mid/large multifamily real estate in addition to the larger cash flow numbers being more material in offsetting living expenses

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

MLS

How did you finance this deal?

Hard Money Loan and personal capital

How did you add value to the deal?

Full gut renovation and turnover of tenant base

What was the outcome?

Fully stabilized asset with 9% CoC return post cash-out refinance. Solid base hit with lots of learnings to grow from!

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

Yes, iFundCities who was our hard money lender was great to work with!