5 Unit apartment building BRRRR

[Erich Beyer]

Hey all,

Wanted to share our most recent success that had some lessons learned along the way (as they all so...). In March we bought a nearly vacant 5 Unit that my contractor said would take 2 to 3 months to refinance. He was going terribly slow and I did everything I could to get him and his team there more, but he had every excuse in the book. We paid 300k and put 70 into it and the original as complete appraisal was 445k because of the rents they assigned to it. This would not have been high enough to do a BRRR but I knew we'd get what we needed because I knew we could rent the units for more than the appraiser projected. Our contractor didn't finish till November. Needless to say We weren't happy with him, though he did do a lot for relatively little money. We got the building rented for $4,900 a month for the 5 units and reappraised (on our dime). The appraisal came back at 530k, we pulled back out the money we had in it to go find another deal.

[Antoine Martel]

I am very happy for you and glad that you were able to pull it off even though you had a rough time working with the contractor.

Sometimes things all work out even though the process isn't that smooth. 

Now it's time to just make that process as smooth as possible and it sounds like you need to find a new contractor.