North Knoxville Duplex BRRRR

[Cory King]

Investment Info:

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

Purchase price: $185,000
Cash invested: $55,000

Contributors:
Gregory Crane

Sourced on the MLS. Partnered with a member of our local investor community & BP member who fronted the down payment on the private money loan. I cover insurance and utilities. We hired a local GC to manage the rehab which is largely surface level outside of some bigger cap ex items like roof, windows, hvac. Thankfully those are a once in 20 year items so we should be clear after that. Duplex was built in 1997 so newer materials used helps keep from other big updates from being done. ARV looks to be around $325k and we expect each side to rent for $1500/mo range. Planning to BRRRR this and hold.

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

Growing area of town where new developments are headed and prices are still below the median for the area w/ a 10% growth upside in the short term.

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

Sourced on the MLS. Being able to offer cash aka hard money made things easier to win seller over

How did you finance this deal?

Hard money loan

How did you add value to the deal?

New roof, windows and surface level updates throughout

What was the outcome?

In progress

Lessons learned? Challenges?

Opening yourself up to partnerships unlocks more opportunities. Leaning on each others strengths goes a long way. Trust is huge. Don't let anyone tell you that you can't find deals on the MLS.