Duplex BRRR update! - Green Home Properties, LLC

[Kirk Calhoon]

Investment Info:

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

Purchase price: $85,000
Cash invested: $70,000

June 2018:Picked up a Duplex in historic Westside KC MO. Bought for $85k BRRR method is by far the most profitable way to invest in real estate and create that investing snow ball! We are rehabbed currently and are rent ready. Property is listed for rent and for sale. I am under contract on a deal that will inevitably be a launch pad for my RE career so if it makes sense, I am going to 1031 exchange my profits over into my next deal.

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

Building that passive income snowball! You have to find the BRRR deal at a solid price and make sure to not over spend on your rehabs (easier said than done). This strategy seems to be pretty rock solid as long as you don't over spend.

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

I found this on the MLS. I made an offer over asking to due it being under valued. I offered to close quick with cash and that shot my offer to the top. The property was deeply neglected so that lowered the buyer pool by quite a bit. Once we closed mid summer we got right to work!

How did you finance this deal?

I used a HELOC to buy cash in had funds in the bank from my last BRRR ready to deploy for construction.

How did you add value to the deal?

We cleaned up the place, Added efficiencies such as additional insulation and new plumbing. We drywalled, painted and dressed it up so that it it up to date. The property is very close to the downtown mid town area of Kansas City so I knew that it will rent relatively quickly at the right price. We are in lease up as I type this.

What was the outcome?

Number TBD, in lease up and actually listing for sale for 1031 purposes

Lessons learned? Challenges?

Old building come with many many many more headaches. They just built things differently 120 years ago. Don't avoid these at the right price but be careful and know what kind of project you are taking on!