Just Completed BRRRR of Triplex

[Tina Wicks]

Investment Info:

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

Purchase price: $40,000
Cash invested: $40,000
Sale price: $119,000

BRRRR of A Triplex

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

It's the only way to acquire properties. Have to buy distressed, use the HELOC from my primary home plus hard money to purchase and rehab, then refinance and pay everyone back and start over. Did 4 of these in 2022.

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

It's an off market deal from contact that I've gained from networking.

How did you finance this deal?

Hard money and HELOC on primary home.

How did you add value to the deal?

Did a rehab to all 3 units. Roof repair, cleaned up outside, and a lot of cosmetic work in the units.

What was the outcome?

Appraised at $119,000

Lessons learned? Challenges?

This was very smooth. Few surprises and contractor was excellent.

[Tina Wicks]

Here is the information.  

Purchase price: $40,000
Cash invested: $40,000
Sale price: $119,000
Rents:  $2400/month but this includes utilities which I'm estimating to be $500-600/month.

I'm currently in the process of refinancing with a commercial mortgage as I already have 10 conventional mortgages. I should close any day. This will pay off the HM lender and the HELOC money. I have done 5BRRRRS so far with mixed results. I know that there are a lot of SM posts about people that make a ton of money on the BRRRR. I haven't had that type of success. To me a homerun is when I refinance and I get all of my money back. But I'm OK if I just hit a double and get 90% of my money back. Because this means, I have a rehabbed property that is getting market rent and I only had to put in 10% of my own money instead of 25%. Don't get caught up in what you see on SM and feel that you have to hit a home run or you won't do the deal. Just get in the game and get on base. That's better than a strike out while swing for the fences. (Sorry for all of the baseball analogies).