BRRRR live in hack/buy and hold

[Molly Arnott]

Investment Info:

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

Purchase price: $770,000
Cash invested: $154,000

12 acres in Santa Rosa, we fixed up the main house and 2 bedroom rental. Live in the main house and rent out the apartment above the garage.

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

Having built equity in our previous live in flip and wanting a bigger property and home but not wanting the big mortgage so we stumbled into the idea of buying a place with a rental.

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

MLS and an agent, nothing exciting

How did you finance this deal?

We didn't qualify for the jumbo loan so the previous owner carried back 95k of the loan which we eventually moved over to a HELOC in order to cut ties with the previous owner.

How did you add value to the deal?

We've done flooring, paint, bathroom and kitchen updates to both the main house and rental.

What was the outcome?

We get $2300/mo for the 2 bedroom rental bringing our total cost to list there to under $2000.

Lessons learned? Challenges?

Our well doesn't produce well and it's a constant concern. In the future I wouldn't purchase a rural property that doesn't have a well producing more than 2 gpm.