East La 4 UNIT Fixer Upper

[Matt Nuttall]

Investment Info:

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

Purchase price: $475,000
Cash invested: $70,000

Acquired with Business Partner Chris 50/50 via Hard Money. Gutted 2 of the 4 units. Hired Architect and engineer to add additional bedrooms to each unit. New Concrete driveway throughout, new landscaping , Major roof, foundation, window, plumbing, electrical, work performed. Fired a contractor and lost 50k in the process. Found new contractor to complete project within budget. Currently exercising renting to Section 8 Tenants. Property will cash flow well once all 4 units are rented. #BRRRR

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

Excellent purchase price with big upside.

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

Business partner Chris Miller

How did you finance this deal?

Hard Money

How did you add value to the deal?

Comps in Area. Bids from Sub Contractors of various trades.

What was the outcome?

BRRR! Got appraised @ $1.1 Million. Refinanced onto 30 yr fixed and pulled out 1/2 of cash invested. 2 of 4 units rented. Once fully rented, will cash flow

Lessons learned? Challenges?

Aquired a Nightmare tenant paying well below market value for rent. Went to court 5X over 6 months of non payment of rent. LOST due to lawyer's malpractice. Lesson learned - Spare no expense and HIRE THE RIGHT LAWYER.

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

yes, Eric Weidner with Civic Financial.