30y/o, Married, 1 kid stay-home mom: BRRR 4PLEX W/Bank

[Jeryes Freih]

Investment Info:

Small multi-family (2-4 units) other investment in Wappingers Falls.

Purchase price: $330,000
Cash invested: $85,000

4Plex, 3-2/1 and 1-1/1 units. 2/1 units are rented at 1300. Rehab needed of deck, stairs, garage and 1/1 unit. In Contract at 320K. Rehab=30K. ARV=425K. Negotiated with bank to give 75% LTV on 1st mortgage and 80% CLTV on 2nd mortgage. Cash needed to close and rehab apx 100K. Reappraise After rehab should allow me to pull most cash back out of deal. Total income=5,500. Will leave 800 in cashflow when all said and done.

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

Being that this is my first deal and I do not have a lot of cash having a property where several units are rented and I can rehab the property while the rents are covering the expenses.

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

Found it on Realtor.com and I negotiated the price down from 385k because there were some minor exterior repairs needed and 1 apartment was vacant and trashed that needed to be fully rehabbed.

How did you finance this deal?

HELOC on primary residence used for down payment and rehab with bank financing.

How did you add value to the deal?

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

What was the outcome?

Still in process of closing. We shall see....

Lessons learned? Challenges?

Bank financing a rehab project via conforming mortgage is VERY TIME CONSUMING AND FRUSTRATING.

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

Mortgage originators from Hudson Heritage FCU and TD bank were both very good. Feel free to contact me for names.