2 Unit Rental Property - Start of BRRRR

[Steve Truesdale]

Investment Info:

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

Purchase price: $173,500
Cash invested: $80,000

Rehabbed 2 unit rental property. Currently rents for $2540/month combined.
Cash Flow - $1,322
Total Cash Invested (down payment 35K + rehab 45K): $80,000
Est New Value: $265,000
Est Cash Out Refi when available: $69,000

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

I liked the idea of a multi-unit over a SFH to spread the risk and seemed to get higher cash flow.

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

This property was on the MLS for 3 months during the pandemic. They reduced the price 10k and when I found the courage after running the numbers 300 times, I made my offer.

How did you finance this deal?

30yr conventional mortgage at 3.5%. 20% down.

How did you add value to the deal?

Complete rehab inside and out.

Lessons learned? Challenges?

When you buy a place with tenants living in the property, get an estoppel agreement. I didn't think I needed one and it cost me money.