First BRRRR and rental property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $307,500
Cash invested: $70,000
First successful BRRRR after selling my fix and flip in Biddeford. I purchased for just over 300K, a beatiful, extremely neglected piece of real estate, with a partial view of Portland Harbor. After a long rehab, involving structural improvements, full cosmetic redo, new electrical, plumbing, and heating; I was able to complete the BRRRR with a newly appraised value of $540,000. The two units currently bring in just under $5000 a month, and cash flow after PITI, capex reserves, misc., etc. for about $500 a month, while also gaining me ~$200K in equity and getting all but $20K of my investment back.
What made you interested in investing in this type of deal?
To get some cash flow!
How did you find this deal and how did you negotiate it?
On market deal that most investors strayed from because of the rot/structural damage.
How did you finance this deal?
Hard money.
How did you add value to the deal?
Completely remodeled every inch. Also added bedrooms.
What was the outcome?
A successful BRRRR.
Lessons learned? Challenges?
Fast construction saves money.
