Lakewood, OH duplex buy and hold BRRRR deal

[John Prucha]

Investment Info:

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

Purchase price: $120,000
Cash invested: $70,000

Up-down duplex in a B class neighborhood.
My business partner and I are flipping units' interiors and doing minor exterior repairs.
This is my first long distance deal and the team has been reasonably good for the first deal but I need to make an upgrade in the contractor department. Ours is good, but too expensive. The property manager also seems to spend a lot of money on maintenance. We have had conversations with him and will be switching PMs if persists. Once we finish the upstairs rehab we'll BRRRR and pull our money out. Based on the property ARV we should be able to recoup all rehab money.

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

The cash flow opportunity

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

Off market through local realtor and wholesaler. Negotiation after inspection.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Interior upgrades

What was the outcome?

Increased rent per unit by $225.

Lessons learned? Challenges?

Find a more affordable contractor.

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

Tal Tamir - realtor and large multifamily investor. Integrous, responsive and thoughtful.