First Out of State BRRRR - Duplex in OKC

[Doug Spence]

Investment Info:

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

Purchase price: $100,000
Cash invested: $25,000

This was my first BRRRR project, and I did it all from San Diego using a great team there in Oklahoma City. This was purchased off-market via my agent/property manager.

Purchase price was 100k and rehab was 25k, both funded by a private lender. Most of the work was exterior so we were able to keep the tenants in place during the rehab. After the work was complete (6 months later), I did a cash out refinance at 80% LTV and it appraised for 165k.
It rents for about 990/side. The property is currently worth 200-220k.

One mistake I made was not realizing the mortgage was only fixed for 3 years, then variable. So I will have to reassess as I approach that 3-year mark if it still makes sense to hold it once that interest rate jumps up, or maybe I'll be able to refi into a longer-term fixed rate.

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

Prior to this deal, I had been buying turnkey investments, but I wanted to be more hands-on and get a better return on capital.

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

My real estate agent (who is also a property manager) brought it to me

How did you finance this deal?

Private money at 10% (no points) into a cash out refinance, 80% LTV

How did you add value to the deal?

Mostly exterior cosmetic improvements, some interior improvements including flooring.

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

Abbie Davis at The Property Center in Edmond, OK!