Duplex Partial BRRRR from March 2019

[Dennis Wasilewski]

Investment Info:

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

Purchase price: $50,000
Cash invested: $5,000

Partial BRRRR:

Bought for $50,000 and had to work with non-paying tenants to get them to new housing. Then I spent around $5,000 in repairs across both units. After 5 months the property was refinanced at an appraised value of $68,000. Cash flow is around $400 per month.

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

Always searching for BRRRR opportunities - ability to create passive income with limited capital.

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

MLS. Negotiated via agreement of sale/counter offers.

How did you finance this deal?

Hard Money Loan

How did you add value to the deal?

Minor renovations and then better tenant placement.

What was the outcome?

Some cash remains in the deal but far less than buy & hold would have yielded.

Lessons learned? Challenges?

Don't be afraid of a deal with non-paying tenants. Always follow through on the paperwork but also attempt to find alternate solutions.