BRRRR is the BESTTTT

[Brett Merrill]

Investment Info:

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

Purchase price: $136,000

Here is a quick breakdown of my latest BRRRR! This is a 2-family 3bed/1bath for each unit.
Purchase price: $136,000
Down payment + CC: $29,200
Repair Cost: $71,000
Interest only at 4% for repair cost x 5 months: $1180
All utilities split
Top unit rented annually for $1500/month
Bottom unit rented annually 1450/month
Total rent $2950
All in for 101,380
Appraised at $337,000
Cash out refinance for $100,000
Total cash left in the deal: $1,380
Thank you beardybrandon and BiggerPockets for the wealth of information and invaluable tools you provide to make deals like this possible! Also, thank you John Krause for you excellent guidance through the creative lending process.

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

Bigger Pockets Podcast gets 100% the credit

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

Circle of influence. A fellow gym member for this particular deal.

How did you finance this deal?

House hack 5% down for the purchase. Private money interest only for the rehab.

How did you add value to the deal?

Full remodel of both apartments interior and exterior. Added a bedroom to one of the units.

What was the outcome?

Purchase price: $136,000
Down payment + CC: $29,200
Repair Cost: $71,000
Interest only at 4% for repair cost x 5 months: $1180
All utilities split
Top unit rented annually for $1500/month
Bottom unit rented annually 1450/month
Total rent $2950
All in for 101,380
Appraised at $337,000
Cash out refinance for $100,000
Total cash left in the deal: $1,380

Lessons learned? Challenges?

I had some difficulty with some subcontractors and would have save money and time with a better team.

[Brett Merrill]

@Nicholas L. I took out an even 100. I decided to leave some money in the deal at that time. However, with the rate increases now I regret not taking that cheap money while I could have. Either way I was happy with it. Thank you with the kind words. Also, I am doing a blanket HELOC with the some of my properties so I'll snag that back out soon.