5 Unit BRRRR deal in Covington, Kentucky!

[Joseph Cornwell]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $140,000

5 Unit apartment building in Downtown Covington, KY. It will be a full gut renovation project. Should cash flow around 1k/mo after refinancing our cash from the deal. I had a partner bring this deal to me and we are working on it together.

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

I had a partner bring this deal to me that needed extensive renovations, since that is my area of expertise with BRRRR deals, he asked me to partner on it.

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

My partner found this deal from a wholesaler and purchased the contract assignment.

How did you finance this deal?

We have a private lender on the renovation funds, and are using a commercial lender on the balance for purchase and renovations.

How did you add value to the deal?

I operating the full renovation of the building and interiors, improving lay outs, and adding a dormer and walk out roof top deck on the top floor.

What was the outcome?

It should be worth around 500k ARV. Then cash flow around 1k/mo after paying on the private lender and initial rehab loan.

Lessons learned? Challenges?

So far no major challenges!