98% BRRRR 4 plex

[MIlton Monzon]

Investment Info:

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

Purchase price: $270,000
Cash invested: $69,000

About 98% BRRRR with 5k left in the deal. Bought via wholesaler for 270k. Used a HML with 20% down approx 54k. Put in 15k and made rents market rent. 3 Month turnaround time. ARV came in at 375k with cash out of 281k (75%) entire down payment is recovered and most of rehab money. Time to repeat. Still cashflows after PITI with 9% rate.

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

Generational Wealth and BRRRR method with mult families.

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

Off market via wholesaler who ive done 3+ deals with.

How did you finance this deal?

Via HML PINNACLE FINANCE. No rehab in loan only purchase but was able to make the close without an interior appraisal. My usual RCN capital needed an interior inspection. CASH OUT REFI was with RCN capital at 75% of 375k.

How did you add value to the deal?

Updated and serviced old oil tanks and the deck. Increased rents to market rent.

What was the outcome?

Expected 325k ARV and thought I would leave money in the deal. Ended up with 375k ARV and pulled 98% of money invested out.

Lessons learned? Challenges?

Focus on increasing rents, making the curb appeal valuable, and mechanicals are huge.

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

RCN capital and Pinnacle Financials HMLs.