1st Real Estate Deal WOOHOO 🙌🎉

[Sage Souther]

Investment Info:

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

Purchase price: $210,000

1st Real Estate Deal WOOHOO 🙌🎉
5-7 Union St. is a two-family colonial that was built in 1885 that was purchased by me and my partner as a non-owner-occupied investment property. This off-market deal was owned by an elderly woman (my grandmother) that had to sell the property due to accumulating nursing home costs associated with her stay.
This property is very distressed and is in need of major renovations. It was very challenging to get this property because the condition of the house is borderline financeable. Our mortgage broker had to do some shopping around to find a lender that would finance a property in this type of condition. Not even to mention that I had to put about $1800 in sweat equity to bring the 1st unit up to “rentable” condition due to the past tenant being a hoarder.
We were able to obtain financing on the property and the bank appraisal came in well over purchase price for instant equity. 25% downpayment with 30-year ARM @ 6.8% total monthly payment $1,831
Me and my partner are implementing the BRRRR investment strategy. We are both on the mortgage and title. My partner fronted the entire downpayment, closing costs, and carrying costs of the project. My responsibility is to complete all construction and oversee the entire remodel project because that is my profession and where I'm experienced, where he is not. All equity and profits associated with the property are split 50/50.
BRRRR Projections
- Purchase Price + Closing: $218,000
- Estimated Rehab: $120,000
- Estimated ARV: $650,000
I will be making a YouTube video serious about this project and go into every little detail about the situation so please subscribe 🙏

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

This deal has massive value add opportunity. It's also a win-win scenario for both parties because the seller had to get rid of the asset so they can apply for Medicaid and the property stays in the family

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

family deal

How did you finance this deal?

25% downpayment with 30-year ARM @ 6.8% total monthly payment $1,831

How did you add value to the deal?

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What was the outcome?

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Lessons learned? Challenges?

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