Long time BP follower passes on the BRRR fever!

[David Akeson]

Investment Info:

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

Purchase price: $409,000
Cash invested: $80,000
Sale price: $675,000

Following BiggerPockets since 2015, my then fiancee caught the bug too when she heard the BRRR process. Together we moved forward on a plan, beginning with the first purchase in 2018. It was to be the start of a multifamily portfolio, but the potential to diversify by selling this starter duplex seemed like the next logical step in our journey of growth.

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

We love traveling and real estate rental market is the perfect income stream.

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

Online resources like Redfin, BiggerPockets, NeighborhoodScout, and a great lender were part of sourcing and closing successfully.

How did you finance this deal?

401k loan for the downpayment, FHA loan and house hack.

How did you add value to the deal?

The property needed some TLC, and rents caught up to market. It got a full makeover.

What was the outcome?

The BRRR method was applied, the sweat equity netted proceeds for us to install renters in the owner occupied side of the duplex.

Lessons learned? Challenges?

Take nothing for granted. Builders take shortcuts, kick out tenants who won't use online payment portals, the best screened tenants don't utilze a nice backyard or tend automatic watered raised garden beds. Your neighbors will also look out for your house, send them Christmas cards too when the time comes!

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

We had an excellent loan broker from Walnut Creek named Robert Ring, so if you're reading this, kudos for bringing it all together!
Shout out to Donna Hertel with 21st Century, our agent in the Sacramento area who has helped purchase, sell, and continue our endless search for the right deals!