4Plex BRRR project

[Jose Bernard]

Investment Info:

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

Purchase price: $255,000
Cash invested: $350,000

This is a 4plex. It was a cash purchase and financed by a combination of private lenders and a business line of credit. It's a BRRRR project. The purchase price was 255k, it needs about 80k in rehab, and the ARV is 465k.

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

The deal had great potential for a cash flowing BRRR project, and it was in my market where i already owned several multifamily properties.

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

The deal was on the MLS. I had a relationship already established with the listing agent, which helped a lot in getting the deal negotiated and closed.

How did you finance this deal?

The purchase price plus closing cost was financed by private lenders, and the rehab in being financed by a business line of credit.

How did you add value to the deal?

Each unit needs to be cosmetically rehab. In addition, I'm able to add one additional bedroom to 3 of the 4 units unit by updated the layout.

What was the outcome?

Currently one unit has been completed and we are starting on second unit.

Lessons learned? Challenges?

The inherited tenants are being turned over the units gets completed. I time it so as one unit goes on the market; we are turning over the next unit. I had to implement cash for keys for one unit, another unit there was an eviction court ordered already in place, and the other unit was vacant.