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Updated almost 5 years ago, 02/21/2020
- Rental Property Investor
- Bowling Green KY ~ Lexington, KY
- 565
- Votes |
- 1,319
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Infinite Return Cash Flowing Duplex w/ BRRRR Method
Investment Info:
Duplex (2 units) buy & hold investment property in central Kentucky about 30 minutes from Lexington, KY. Located in our state capital of Frankfort, KY.
Purchase price: $95,000
Cash invested: $11,200 (toward purchase)
Rehab Cost: $11,000
ARV: $155,000
What made you interested in investing in this type of deal?
This property was in our target area and matched our buying criteria.
How did you find this deal and how did you negotiate it?
This deal was found by a local wholesaler and we bought the deal from them. There was some foundation work needed and we negotiated some on that but overall the building was as expected.
How did you finance this deal?
We purchased this deal with a local hard money lender. This include some skin in the game of our own money (which I borrowed from a HELOC).
How did you add value to the deal?
This property was rented under market value. Leases were on a month to month and both tenants moved out after a proposed rent bump. We then rehabbed the property and moved new tenants in.
Lessons learned? Challenges?
Having a good team is key to success. Because I knew the market I was able to jump on the opportunity sight unseen and I was able to be very hands-off on this project. The BRRRR method is a valuable tool.
- James Wilcox