Saint Louis, MO: BRRRR Duplex

[Michael Fleet]

Investment Info:

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

Purchase price: $104,000
Cash invested: $40,000

Wholesale duplex: (1) 3/1 and (1) 2/1. Estimated repair cost after acquisition = $30,000. ARV: $165,000. Estimated Gross Rent = $1,500/mo

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

I was interested in working on my first BRRRR to speed up my velocity of money.

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

I found this deal through a wholesale website. The buyer had flipped the contract. He made $5,000 on the contract and I have the opportunity to BRRRR the deal. My exit strategy is to sell the property post-rehab for $165,000 if the end numbers don't make sense for me to refinance it into my buy-and-hold portfolio,

How did you finance this deal?

Hard money to acquire. I am providing the rehab funds. I hope to refinance as much of my money on the back end and seek the next deal.

How did you add value to the deal?

The property had good bones. Update one of the unit's electrical panel and plumbing stack. The remainder of the rehab is mostly cosmetic updates since the residence has not been updated is 30 years.

What was the outcome?

It is in progress.

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

Agent, HML, and property management (as one of the units was occupied at the time of the acquisition).