Three unit in rough shape near the lake

[Sherri Behrendt]

Investment Info:

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

BRRRR to B x 2
LTR

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

Location, location, location

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

Driving by and saw a for sale sign that wasn't on the MLS yet. Used my RE license to access before other showings and made a cash offer on the spot.

How did you finance this deal?

Cash, then cash out refi.

How did you add value to the deal?

Completely gutted 2 of the three units to make modern Airbnbs. One unit had a 13-year LTR, which we left in place without rehab.

What was the outcome?

6 months to rehab as it was hard to get contractors with no notice, so we did much of it ourselves on weekends. Popular rentals doing well, now. Medium-term renters for off-season.

Lessons learned? Challenges?

Hire out more of the work if you can to flip faster. Don't spend as much to rehab and electrical was a shock compared to the rest.

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

Yes, Kris Foddrill was the listing agent out of Ames, IA.