Buy Rehab Rent Refinance Repeat (BRRRR)

[Albert Jay cottle]

Investment Info:

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

Purchase price: $100,000

3 detached cottage units (1br/1bth) where I performed the BRRR strategy and reinvested the proceeds into my next deal. Currently property is cashflowing and plan to hold for at least the next 5 years (will re-evaluate in 5 years).

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

I saw the instrinsic value of the property where I could perform the updates/remodeling and increase the rents. The 1br/1bth units are affordable rents and saw that the demand for the product was high with low supply of 1br/1bth units

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

A real estate agent/broker found the deal for me. The property was active in the MLS. We put an offer in and they declined. The listing expired and about a month later the selling agent called my broker if the buyer (me) was still interested. Of course I said yes.

How did you finance this deal?

Conventional financing. 20% down. Refinanced with conventional 30 yr term at 4.25% and pulled the equity out to invest in another deal.

How did you add value to the deal?

I remodeled the third unit, updated the other two units. All new LVP floor covering, mini splits, bath vanities, toilets, paint, fixtures, etc. Increase the value approximately $90k.

What was the outcome?

cash out refi and hit a home run

Lessons learned? Challenges?

dealing with contractors was tough and the project took longer than expected.

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

yes. ryan bruff with atlantic bay mortgage worked hard and got this deal financed for me. no matter the challenge he got it done.