Small Multifamily Sheriff Sale into future BRRRR.

[Adam Feick]

Investment Info:

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

Purchase price: $53,000
Cash invested: $103,000

Sheriff Sale - Found the property listed online and after due diligence decided to try and buy it.
Bought the property with cash and borrowed against another property for the rehab costs. Expect to be all in around $103,000 with an ARV of $150,000.
Property is a triplex. 1 - 2bd 1ba unit and 2 - 3bd 1 ba units. Gross rents should be $2,100~2,300 per month.

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

Discounted property with strong value add and future cash flow.

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

Found the property online on the sheriff's website.
The sales are all online now, so I entered my highest and best offer. I ended up winning the auction and purchasing the property a month later.

How did you finance this deal?

I paid cash for the property and refinanced another property for the rehab funds.

How did you add value to the deal?

All 3 units will be rehabbed. New floors, paint, appliances, water heaters. Repairs to walls and other areas.

What was the outcome?

Contruction is on-going. 1 unit to be ready in June, 1 in July and 1 in August.

Lessons learned? Challenges?

My first BRRRR property, rehab takes longer than expected but I am very happy with the outcome.