BRRRR Investing Works

[Jordan Mummau]

Investment Info:

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

Purchase price: $120,000
Cash invested: $80,000

BRRRR Investment. Cash out refinanced 115% over initial investment

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

Buy and Hold with no money down (after financing)

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

MLS, Vacant, abandoned, very poor condition

How did you finance this deal?

Cash to mortgage

How did you add value to the deal?

4 units plus garage. None of the units had working kitchens or bathrooms upon acquisition.

What was the outcome?

Classic BRRRR investing strategy. I was able to refinance back out my entire investment, and some.

Lessons learned? Challenges?

Always ensure you do ALL of the renovations during the initial scope of work. For example, I replaced 90% of all the windows before refinancing. Two years later, I wish I had done everything the house needed as some of those odds and ends not taken care of originally i've had to go back in and replace and it diminishes cash flow.