Infinite Return with a BRRRR Duplex

[Michael Glaspie]

Investment Info:

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

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

I purchased a duplex with the BRRR strategy. Purchase and rehab all cost me $105,000 with the ARV estimated at around $135,000. The rents are $675 on one side and $725 on the other. This property far exceeded the 1% rule. I built a relationship with a 'Turnkey' company, but by leverage business Lines of Credit, I was able to purchase 'like cash' for a steep discount. Ready for the next one!

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

I am now capturing net worth. So the BRRR strategy is a perfect way to still get cashflow but capture equity.

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

I was able to move quickly on a deal with a company that I had a previous relationship with. The speed of the offer allowed me to get a steep discount.

How did you finance this deal?

I used a business Line of Credit to cover purchase and rehab costs. None of my own money went into the deal.

How did you add value to the deal?

By completing renovations on interior and exterior I was able to add roughly $30k in value.

What was the outcome?

Property is cash flow positive

Lessons learned? Challenges?

Cash and confidence in underwriting deals allow the investor to get great deals by moving fast.