BRRRR Duplex in Frankfort, KY

[Joseph Back]

Investment Info:

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

Purchase price: $83,750

BRRRRed this duplex in Frankfort, KY. Purchased off-market through a wholesaler using cash from a HELOC. After purchase immediately approached a local bank about doing a cash out refinance and was able to pull all of my initial capital back out. I now own a cash flowing duplex with an infinite cash on cash return.

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

Was looking for cash flowing small multifamily properties and came across this property from a local wholesaler.

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

Found it through a local wholesale company and was able to negotiate the price down $5,000 due to the presence of bed bugs in the left unit.

How did you finance this deal?

Purchased initially with cash from a HELOC on a personal residence. After a month of ownership I did a cash out refinancing with a local bank and was able to pay off the HELOC completely.

How did you add value to the deal?

Cleaned up the exterior and raised rents slightly on both sides.

What was the outcome?

Completed a cash out refinancing after 1 month of ownership and now own a cash flowing duplex with an infinite cash on cash return.

Lessons learned? Challenges?

Don't let the presence of bed bugs or termites scare you. Just get a quote for removal and move forward.