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Updated over 4 years ago,
Ayer 10-unit BRRRR Buy and Hold
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $738,000
10 unit property that was on the MLS. My partner and I went to see it 2 hours after it was posted and offered the asking price and had it under contract in 4 hours after it listed. This is a text book BRRRR property. We were able to purchase for 738K, the property was fully rented and cash flowed from day #1 even with rents 3-400 below market. It needed roughly 40-50k of updating/rehab. Our AS COMPLETE appraisal came in at 1.05 Million. We remove two tenants at a time, cash for keys, our team goes in rehabs and re-rent at a much higher rent until all 10 units are complete (roughly 8-10 months) and the property is then refinanced at 1.05 M. We are able to pull out all of our investment money leaving $0 into the deal. We used private money to fund the down payment so we never used any of our own cash.
What made you interested in investing in this type of deal?
BRRRR
Cash-flow
How did you find this deal and how did you negotiate it?
Deal was found on the MLS. Offered asking price.
How did you finance this deal?
Private money for down payment and rehab. Conventional 25% down commercial loan with a local bank.
How did you add value to the deal?
40-50k of rehab and increased each units rents 300-400 more than they were already at after rehabbing, boosting the income/expense ratio immensely. 738k purchase price and AS COMPLETE appraisal of 1.05 M.