BRRRR in Indianapolis

[Andrew Davis]

Investment Info:

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

Purchase price: $69,900
Cash invested: $2,500

Our first BRRRR in the Indy market. We partnered with a private investor who brought cash to the deal in exchange for a 10+% return on his money.

Since our company, Talent Capital, is part owned by a couple GC's, our renovations get top priority and we finish them quick.

We're finishing up the refi this month (appraisal was yesterday), will cash our investor out at a healthy return and keep this one for the long term.

Thanks for reading!

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

We love the Indy market and the cash flow was too good to pass up. We like this particular neighborhood and feel it has strong long term potential. Plus we had a private investor on the deal which minimized our cash outlay and generated them a nice return.

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

A wholesaler brought it to us and we were able to negotiate a credit for appliances.

How did you finance this deal?

A private investor partner. It's our favorite way to do deals and is truly a win-win.

How did you add value to the deal?

New floors, paint, kitchen and bathroom updates, appliances, interior doors and fans.

What was the outcome?

Each side is leased up on a 2 year term at market rents, cash flowing very nicely.

Lessons learned? Challenges?

Always ask! We negotiated a nice credit for appliances just because we asked.

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

Yes!

- David Moudy is our rockstar property manager - he leased up both sides in less than a week at market rents on 2 year leases.
- Scott Comer & Mark Mayer at RMG (Residential Managment Group) knocked out the renovations in record time.