Slow timeline BRRRR in FL!

[Brian Goodling]

Investment Info:

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

Purchase price: $160,000
Cash invested: $8,000

Duplex in Lakeland FL. 2/1 each unit at about 850sf per unit. ntent to fix up each side during tenant turnover and increase rent. Current rents are $600/mo for a month to month and $750 for a year long lease. Current cash flow of $550/mo. Market rents without any renovations are $850-900/mo.

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

I started out doing two single family homes. I wanted to start reaching into the multifamily side of things. When I was in the market looking for properties (during COVID) the inventory was quite scarce and low quality. I wanted to start gaining more doors and working with economies of scale.

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

While looking through the MLS I found a property that looked promising. My agent ended up knowing the listing agent and ended up finding out that the listing agent had another duplex coming on the market in the coming days. Sent an offer sight unseen and negotiated from there. Offered full asking at 155k to secure the contract. After walktrhoughs and inspections we renegotiated to 160k and the seller would fix the electrical panel and install a new AC unit with 2.5% seller concessions.

How did you finance this deal?

I used a combination of money from myself and from a parent to help finance. The parent who supplied some of the money will be living in half of the duplex.

How did you add value to the deal?

I am going to do some light renovation work and raise rents to be more consistent/slightly higher than market rent for a better product than what is around that area.

What was the outcome?

Work in progress.

Lessons learned? Challenges?

When it rains it pours. The day after closing a had a call from a tenant that their AC wasnt working. After 3 service calls and quite a few hours later everything is good to go.

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

Yes. My agent Bryce Wade who is also a BP member was my agent on the deal and is always a pleasure to work with.