BRRRR Investment (1st of 4 in 2020)

[Jordan Mummau]

Investment Info:

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

Purchase price: $98,000
Cash invested: $40,000

BRRRR property I bought as an REO. Bank originally wanted 125K and we settled on an all cash deal at 98K. I put 40,000 into it. 15K in the top unit and 25K in the bottom unit. The property smelled awful and was in need of major cosmetic overhaul but the outside exterior, siding and roof were all in good shape. The property now rents for $2,000/mo and was refinanced at 80% of appraisal which came back at $180,000. Cash flow after note and expenses is $550/mo