2-unit BRRRR project in Philadelphia, January 2019

[Dennis Wasilewski]

Investment Info:

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

Purchase price: $55,000
Cash invested: $30,000

BRRRR:

Bought for $55,000 and invested approximately $30,000 in renovations. After 3 months the property was fully rented and refinanced at $130,000. Cash flow is over $500 per month.

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

BRRRR process for building passive income with limited capital.

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

MLS purchase and negotiated via agreement of sale/counter offers.

How did you finance this deal?

Cash and line of credit

How did you add value to the deal?

Extensive repairs both inside & outside of the property - roofing, siding repairs, sewer line replacement, flooring, cabinetry, paint.

What was the outcome?

Near 100% return of capital after refinance.

Lessons learned? Challenges?

Find good contractors rather than the cheapest & most readily available.