Lexington NC Quad 600/month cashflow!!! 105k purchase price

[Jason Coleman]

Investment Info:

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

Purchase price: $105,000
Cash invested: $23,000

Multifamily BRRRR project. Rents currently at 350/unit. With light rehab we should be able to get rents up to at least 425/unit most likely 450/unit. Cashflow Machine. Estimated 590 dollars in positive cashflow monthly

Was able to take my commission and roll it into the deal in order to make it even cheaper overall. Pretty excited about this one.

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

I've been looking to scale my investment business into multifamily for a while. This one popped up on the MLS so I put an offer in.

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

MLS. Listing agent was paying 5% commission (10% total) for the buyer agent. Wow...

How did you finance this deal?

Conventional Loan 25% down

How did you add value to the deal?

Light rehab. Paint, LVP flooring, pressure washing.

What was the outcome?

Still working on it but we should easily be able to get the rents up to 425/month. Compared to the 350/month currently

Lessons learned? Challenges?

I'll keep you posted ; )

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

I am a full Broker so I was able to work on this deal myself. Rolled commission into the deal.

Erin Schlachter at Fidelity Bank. Low closing costs. Easy to work with.

[Jason Coleman]

Hey @Richie Thomas

I put an offer in on this property the day it hit the market. Within an hour of me noticing it hitting the MLS. Offered 5k over asking. 4 units total. BP wouldn't let me click 4 units on the headline. They had 3 out of the 4 units rented out. Leases run out multiple times throughout the year. March, July, September. I did not check on the current tenants credit but I did due diligence on the rent payment history. We did cosmetic rehab on the vacant unit. Paint, carpet, etc. Pressure washed outside and painted exterior back wall (mildew growing previously). The rent was 350/unit. We bumped up the rent to 475/month and already have that rehabbed unit rented. We budgeted 425/month after rehab so the extra 50 is a bonus. The property manager pretty much took care of everything start to finish and conservatively quoted the rehab and new rent. Pretty happy with this property so far. Thanks for asking.