8 Plex in Fort Worth Texas, my first BRRRR

[Clay Gradis]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Fort Worth.

Purchase price: $565,000
Cash invested: $280,000

8 Units, 2 beds, and 2 baths in each. This property needed a lot of work but will clean up nicely.

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

I was looking for multi-family to invest in when this showed up on a wholesalers list. It was a repo which had been poorly rehabbed and then populated to prepare it for sale.

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

Wholesalers list, I worked directly with the wholesaler throughout the process.

How did you finance this deal?

I financed with a Hard Money loan. Included with the loan were funds to rehab the property. The lender has been a pain in the butt to work with to get the funds released. I will never do this type of loan again. I'll take a loan to purchase but not a rehab loan were the lender has to verify work completed prior to paying out.

How did you add value to the deal?

I have rehabbed all eight units and am in the process of renting the units.

What was the outcome?

6 of the 8 units are now rented with a 7th looking like it will be rented this month.

Lessons learned? Challenges?

The rehab took a lot longer and cost a lot more than I expected. This process nearly ended my investing career.