BRRRR in Old Town, Maine

[Eddie Gonnella]

Investment Info:

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

Purchase price: $74,000
Cash invested: $15,000

Duplex in Old Town, Maine near the Old Town Mill. Off-market deal, using the BRRRR strategy. Took over a property about to go into foreclosure. Was filled with stuff and needed significant cleaning and remodel/repairs. Just appraised for $107,000, a little under projected but enough for a good deal.

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

Long term want to have buy and hold rentals but don't want to tie up too much cash into individual properties.

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

Off-market, no negotiation.

How did you finance this deal?

Took over a bad mortgage and house via that had gone south via quitclaim deed. Now in the process of refinancing.

How did you add value to the deal?

Cleaning, move-out, repairs and remodeling.

What was the outcome?

Got it rented. In the process of refinancing, should create about $20,000 in equity and have $300 in cash flow by the end of it.

Lessons learned? Challenges?

Too many to list... This is my first completed (nearly) deal. For starters, accidentally put washer and dryer in the lease but took the washer from the property, and property never had a dryer hook up in the first place. Scrambled on move-in day when the tenants informed me, immediately ordered at 120v small dryer from Walmart and found a washer to hook up. Took it all one step at a time and (somewhat) in stride!