First all cash deal--> BRRRR

[Philip Hernandez]

Investment Info:

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

Purchase price: $62,000
Cash invested: $90,000

BRRRR deal did a 60% cash out refi left about 10k in the deal. Full rehab, building has solid section 8 tenant in it, and going well

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

Cash flow, decent enough area to find solid tenants, pull out cash at refi

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

MLS, worked with Agent

How did you finance this deal?

cash out refi from primary residence

How did you add value to the deal?

fixed roof, replaced furnace, full bathroom and kitchen rehab

What was the outcome?

Currently in appraisal, fully rented out at $1550 before expenses, $400 a month cash flow

Lessons learned? Challenges?

Duplexes have lower limits to how much banks are willing to cash out refi without exorbitant fees. I had calculated my return based on a 75%LTV, ended up doing a 60% to avoid higher fees on closing costs

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

Rebecca Bauer, she's great