Toledo, Ohio Hybrid BRRRR Duplex

[Derek DeVerna]

Investment Info:

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

Purchase price: $35,000
Cash invested: $25,000

Two Family Brick Duplex near Toledo Hospital. Both units came with inherited tenants at $450 per month each ($900 total). The plan is to make significant interior/exterior improvements while increasing the monthly income of the building to $1,100 per month. This will allow us to take advantage of a hybrid BRRRR model and refinance when eligible in January. The goal is always to re-harvest all of our initial capital back out of the deal so we can continue to build the portfolio.

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

The property is located very close to Toledo Hospital. We also wanted to add more brick to the portfolio.

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

I found this deal on the MLS and represented myself as the selling agent in this transaction.

How did you finance this deal?

Commercial 15 year fixed rate loan at 5% interest.

How did you add value to the deal?

We added a new roof/gutter system, exterior paint, landscape cleanup, interior repairs, and plan on raising rents.

What was the outcome?

We have cash flowed on the property this entire time and the inherited tenants could not be happier with all of the improvements that have been made.

Lessons learned? Challenges?

Inherited tenants can be incredibly loyal if they feel like they are being listened to. They hybrid BRRRR model allows one to leverage even more efficiently than the standard BRRRR model.

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

Find an agent that understands your investment philosophy and can align that with your goals.