6 Unit BRRRR in Virginia Beach/Norfolk Area

[Nico C.]

Investment Info:

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

Purchase price: $427,000
Cash invested: $138,000

Snapshot Metrics:

1% Rule = 1.34%
Purchase Price: $427000
Estimated Rehab Costs: $140000
ARV: $610000
Present Monthly Gross: $2320 (3 Vacant Units)
Projected Monthly Gross: $5750

This is our biggest project to date. We purchased 3x Duplexes in very distressed condition , all cash at $427k, for a large scale (for us) BRRRR. That cash flow is weak, but that's because the project is on-going and we are in the process of renovating, transitioning the wrong tenants out, and bringing the right tenants into our units. The strategy is to keep the property preforming + offsetting our expenses as long as possible by renovating units, bringing them to market, and turning over the subsequent units. We learned from our mistakes on our previous post by having the property appraised prior to the renovation which brought back a value of 512k! We remain optimistic about our post-renovation valuation. We are thrilled to be able to provide our current tenants with renovated + safe access to their units, update their interiors, address some ancient HVAC systems and bring their roofs up to standard. Once the project is complete we expect to achieve $5750 in gross monthly rent + recapture 100% of our acquisition capital + 30% of our renovation capital.

We are presently in pursuit of a good financing solution for this project, this seems like a great opportunity to apply commercial financing as we have six units on our hands (3 separate properties). Would love any feedback available!

We are so grateful to be a part of this community, thanks for reading everyone!