Ayer 10-unit BRRRR Buy and Hold

[Ryan Corcoran]

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.

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 and refi.

How did you add value to the deal?

We were able to purchase for 738K, the property was fully rented and cash flowed from day #1 even with rents $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.

What was the outcome?

We both left $0 of our own money into a deal that cash flows $65,000 per year, a little over $30k for each of us. Increased net worth.