First BRRRR! Tough road but couldn't be happier in the outcome.

[Dakota Coburn]

Investment Info:

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

Purchase price: $160,000
Cash invested: $120,000

This property is currently valued at more then double what we paid for it. We hit a lot of obstacles along the way and almost doubled our original rehab budget. But so far it is all worth it. We invested in making sure we got great tenants and the cash flow will continue to raise over the years.

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

The long term cash flow.

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

Bought off the MLS, sight unseen while living in another state, with the help of an agent. We negotiated the price down due to insane hoarders living in the property, and still had to spend $1000's to clear out the property and have ready to even start demo.

How did you finance this deal?

Hard money, and then cash out refi.

How did you add value to the deal?

Completely gutted and rebuilt the entire interior. It was a boarding house That we turned into a three unit. We did mostly durable, high end finishes so that we could attract high quality tenants, and charge above market rents.

What was the outcome?

When we initially signed tenants on, we had a massive amount of interest and found good tenants. We have held on to those tenants and we have not raised rents. We currently are cash flowing nicely, but we could almost double the cash flow if we raised rents to market value again, as rents in our area have skyrocketed.

Lessons learned? Challenges?

A better understanding of all the areas to look at and evaluate with plumbing and electrical, this is where our budget skyrocketed.