Little Havana BRRRR Triplex

[Pierson Tedeschi]

Investment Info:

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

Purchase price: $415,000
Cash invested: $115,000

Triplex in the heart of Little Havanna.
Fixing it up to force appreciation. Then looking to re-fi the cash out and move on to my next deal.

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

I have always been around investors who use the BRRRR method and once I started listening to the Biggerpockets Podcast while working as a commercial real estate agent, it clicked so I dove in.

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

My first deal took me some time to find and get comfortable with. I would get out of work and spend 4-6 hours analyzing and overanalyzing everything that hit the market the day before.
This went on for the better part of a year before I found the right deal.
I had a target number that I had to buy at in order to get the cash on cash returns that I was looking for.
Luckily I was the only interested party to see the property so the seller met my needs.

How did you finance this deal?

This was my first time buying a property and I was not able to get the front end ratios to work for an FHA loan so I went 27.7% down to make the numbers work.

How did you add value to the deal?

2 out of the 3 units were extremely under market for rent. The idea was and is to renovate, then lease out for fair market rent.

What was the outcome?

This is an ongoing project.

Lessons learned? Challenges?

My main takeaway has been to truly know my expenses. I had done all the research I could before closing but there were expenses that came sooner than expected and higher than expected.
The biggest takeaway, never buy an investment property with a pool.

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

I did use an agent who was also an investor and I used his preferred lending agent who helped me secure financing.
Give me a call if you would like their contact information. It made for the perfect team for my first deal.