Quad in Burlington, NC

[Richard Mercado]

Investment Info:

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

Purchase price: $116,000
Cash invested: $113,207

Quad near Downtown Burlington, NC (One parcel with two duplexes). Rehabbed one duplex while one of the tenants in the other duplex relocated. The other tenant wanted to stay so we moved him into a unit in the newly rehabbed duplex once completed. Finished rehabbing the second duplex during the onset of covid and My GC lost most of his crew. We barely got over the finish line just as things were shutting down.

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

In an effort to scale moving up to 4 units seeemed to be a good next move. Burlington being in the path of progeess between Durham and Winston-Salem had a lot of potential.

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

This deal was brought to me by my property manager who was also a broker. It was a wholesale deal.

How did you finance this deal?

Initial financing was all cash. Refinanced in December of 2021 at an appraisal valuation of $313,500 (75% LTV). My first perfect BRRRR!

How did you add value to the deal?

Invested $100K ($25K per unit) in the rehab, down to the studs.

What was the outcome?

We still have this property. It has been a solid investment that is cashflowing and has appreciated greatly.

Lessons learned? Challenges?

Covid was the biggest challenge and the rapidly increasing costs of supplies.