Council Bluffs Duplex BRRRR

[Owen Dashner]

Investment Info:

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

Purchase price: $155,000
Cash invested: $12,000

This is a BRRRR 1990's duplex in Council Bluffs, Iowa that we picked up for a good price along with another duplex. We remodeled one side and did some outside work and raised rents $350. It appraised for $200K, and we did an 85% LTV cash out refi to recoup all of our initial cash and it still cashflows well.

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

I love small, value add multifamily. $0 into the deal and it cashflows well and we have some equity. Infinite returns.

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

A local investor was selling off some of his properties. I got referred to him by a friend, we ended up getting a good deal because we bought 2 of them for cash.

How did you finance this deal?

We used a line of credit for the purchase, cash for the remodel, and refinanced into a commercial note.

How did you add value to the deal?

Kitchen remodel (granite, new backsplash, painted cabinets), new LVP and paint throughout, new fixtures, lighting and vanity, stained the deck.

What was the outcome?

Successful BRRRR with $550 cashflow per month after expenses, all of our money out and 15% equity in the deal.

Lessons learned? Challenges?

Always tell people what you do and what you are looking for. I did not know the investor that we bought this from, but my friend knew I was looking for properties like this and introduced us.

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

Dan Palmquist, President of American Interstate Bank for the BRRRR.