30 unit apartment building through BRRRR

[Dan Mitchen]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $830,000
Cash invested: $5,000

Purchase price: $830k
Rehab: $115k
Private money raised for down payment & reserves: $230k
Stabilized value: $1,857,000
Refi proceeds using BRRRR: $355,000
NOI: $131,000

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

Doing a large deal 1 time and being paid the rest of my life for as long as I own it!

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

Off-market through cold calling apartment owners. We put an LOI in place and re-negotiated after our walk-thru during due diligence.

How did you finance this deal?

Private money for our down payment and reserves. Short term debt at around 7% interest and will refinance with long term debt after the project is stabilized.

How did you add value to the deal?

Forcing appreciation by turning the units and increasing rents to market rent.

What was the outcome?

All-in for around 50% of the stabilized value and will refi in 12-18 months.

Lessons learned? Challenges?

Raise private money before you find your deals!

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

My commercial mortgage broker.