My first multi-family was a BRRR flip to myself with partners

[Keenan Fitzpatrick]

Investment Info:

Small multi-family (2-4 units) other investment in Anchorage.

Purchase price: $250,000
Cash invested: $120,000

Myself and some partners bought 2 fourplex's right next to each other for $250,000 each. They both got about $120,000 of renovation and I used my profits to buy one of them with my FHA. So this was a owner occupied BRRR multi family. It has worked out great. I have great tenants, vacancies are filled quickly, the building is low maintenance and cashflows better than other buildings in less condition and it cost me nothing to acquire.

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

I was able to acquire a deal on a fully renovated 4plex with no money out of pocket.

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

I am a licensee. I originally put it out to my investment group and clients but nobody took advantage so I did. Now, it's my favorite strategy. The negotiations were less on the purchase and more on assembling the team needed to make it happen.

How did you finance this deal?

With an equity partner.

How did you add value to the deal?

I found it, structured the deal and assembled to team.

What was the outcome?

It worked out as planned and everyone was happy.

Lessons learned? Challenges?

Get a roof inspection regardless of what people say. I also learned how to be proactive and provide then needed info to an appraiser to make sure we get the value we need when operating on the top of your market.

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

I recommend the crew at First Rate Financial in Anchorage. They are some of the top producers in the country even though they put the most emphasis on the relationship with their clients. I would not be where I am today without their influence.