20-Unit BRRRR in Galveston, TX

[Chris Nowlin]

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $170,000

20-unit property in Galveston, TX. Currently in the rehab phase for another 4 weeks. 12, 3-bedroom units and 8, 4-bedroom units

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

Cash flow and long term wealth

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

Networking, networking, networking. All of the people involved in the project were met individually, yet connected with one another previously. Purchased from a wholeseller, there was no negotiation.

How did you finance this deal?

Traditional bank financing with 18 months of interest only payments. We added $69,000 in closing costs to the back end of the contract to bring less money to closing.

How did you add value to the deal?

Property was vacant and needed an extensive rehab process. Updated all 20 units.

What was the outcome?

Still in process. Expecting to generate $5,000 to $8,000/month in cash flow once stabilized and refinanced.

Lessons learned? Challenges?

Trust, but verify. Getting to the closing table was a learning experience in itself. I know have a much better understanding of the process and wont need to depend on others as much moving forward.

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

Yes. Wholeseller/Agent/Property Manager and Contractor