Our 1st BRRRR Investment

[Tara S.]

Investment Info:

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

Purchase price: $90,000
Cash invested: $40,000

Contributors:
Justin Sullivan

This property is 4 units. We inherited a (paying) tenant in 1 unit, 2 units are just about rent ready, but the 4th unit is a doozy! The previous owner got in over his head when he reached the 4th unit because it needs a large amount of work. Justin being a contractor our renovation costs are slightly different then others and we are not afraid to take on large projects. This property is not a "perfect BRRRR" but we are okay with that.Cash Flow (After ALL Expenses): $2000(well have back in 5mths)

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

We are all around real estate investors not specifically "Flippers" or "buy & hold" we take the property and run the numbers on what it would work better as, if we keep it, if we flip it, if we flip it as a turn key we run all our options. That being said the cashflow on this property is so good that to us it was a no brainer to keep it.

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

The house was listed for $114,000 on the MLS we originally offered $80,000 they declined & we moved on. After a few weeks they came back to renegotiate we came up to $90,000 and still couldn't come to an agreement, so again we moved on. A few weeks after that the seller called and agreed to take the $90,000.

How did you finance this deal?

We used private money. We actually we working with our usual lender and this property didn't meet their criteria, we could have gave up rite then and there but we didn't. Instead we called my broker, friends, google, bigger pockets you name it. We called and called until we had 3 lenders willing to lend on this property. We were honest with them all about whoever can close 1st well go with. So that's what we did this way if 1 had to back out we had other options.

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

Tara Sullivan - Realtor
Justin Sullivan - Contractor