BRRRR Duplex in Richmond, VA

[Charles M.]

Investment Info:

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

Purchase price: $280,000
Cash invested: $100,000

69% post rehab to ARV with 2 units rented for a total of $3,200/mo. Will pull out the costs basis of 380K to underleverage this duplex and cashflow $643/mo after vacancy, maintenance and cap ex.

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

I have 3 single family rentals and this was a good first step towards MFH.

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

Off-market. Paid asking since it was so much of a slam dunk.

How did you finance this deal?

Cash with a private bridge loan fund to pull capital out of other projects before the 6 month mark.

How did you add value to the deal?

One unit is fully gutted and vacant, and another is rented for $900/mo with a renovated rental around $1600/mo. I also am adding a bathroom in each unit.