All Forum Posts by: Chike Onyia

Given we are new, and looking to do our first deal (aiming to do at least 2 to 3 in 2025 if we can), we're planning to start with smaller multifamily (2-4 units)

We primarily are looking in the Indianapolis market, mostly looking at off-market deals, numbers need to make sense

Targeting a 10-15% cash on cash dividend with a 1.5x+ equity multiple annually post cash out refi

If you see anything let us know

1 Vote

Indianapolis, Indiana

Brief update----

Looking to do residential (2-4 units) multifamily BRRRs to start looking for off market deals

3 Votes

Quote from @Samuel Diouf:

Hey Chike, starting out, I would look for smaller deals. Properties in the 1-4 unit range.

The larger MFH BRRRRs are going to have a lot more moving parts, expensive bleed costs, and less inventory of good deals that you'll come across as a newer investor.

Also, when doing BRRRs, don't expect to pull 100% of your money out every time. The majority of deals are going to require you to leave some of your own money in the deal but it will be far less than 20%.

I can't say much about Indianapolis, but I've been finding a ton of great BRRR opportunities in Cleveland and Columbus!

Thanks Sam! Not a big fan of Cleveland or Columbus, but would definitely look at Dayton or Cincinnati, would lvoe to connect to talk about any deals

1 Vote

Quote from @Evan Alterman:

Cash outs are usually going to be capped at 75-80% of the new value, and definitely will be based on the comps in the area. Residential comps are always based on recent sale comps as opposed to the rental values. Check out the finishes of the comps in the area and make sure you're not going way above the area norm for the quality of finish. ALWAYS be conservative with your budgets + valuations- if you think the margins aren't making sense- they're probably not and you don't want to hope they fall into place down the line bc they won't and then you're in a hole you have to dig yourself out of. There's always deals to be found. Sometimes they jump right out at you, sometimes they take some digging/waiting. You might not get 100% of of your out of pocket costs back through the refi every time, but as long as the rental figures are looking solid and and you're ok with the # of months it will take to recoup what you don't get back in the refi, then you'll be good.

This was stellar advice!!! Thank you so much

0 Votes

Hey Nicholas, helpful, I think depends on the way you look at it and the kind of deals you'll have to be patient for, I have a friend who has 200 units in providence RI, all of them no equity left in them with 15% annual cash dividend in perpetuity, although I agree most deals after a refi especially at today's rates will probably have little no cash on the table

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SUPER HELPFUL... what are your thoughts on being able to cash refi out and pulling equity out for residential properties (especially from a lender perspective when appraising properties). When we do the refi, I am just concerned about the new valuation, will be based on comps and not the cash flow improvements generated from the house, curious if its sitll possible to pull 100% equity out after improvements with a refi for residential

0 Votes

Looking to do my first BRRR deal with a friend as my equity partner

OUR MAJOR GOAL: Get enough cash flow deals to replace our entire salaries (call it $300k+ combined before tax) within the next 4 years

We have $100-150k for a down payment, maybe another for $100k for renovations

We've heard it's better to do 5+ units (commercial) for BRRR because of the cash-flow based valuation, can make more from rehab / improving rental cash flow and higher valuation when you cashout refi so we can rinse wash repeat

We primarily are looking in the Indianapolis market but have heard deal flow for this size is suboptimal especially in highly desirable areas, we're are also looking at Ohio (Dayton, Columbus, Cincinnati) where the prices are actually seemingly a bit lower (maybe more bang for our buck) but was a bit concerned about supply and the employer mix.

We'd also be interested in other states in the midwest and maybe we don't have to do 5+, could do smaller we're not sure

Any thoughts?

9 Votes

Primarily looking for title reps that provide deal flow in RI, MA, CT or Southern New Hampshire

0 Votes

All Forum Posts by: Chike Onyia

Chike Onyia has started 3 posts and replied 8 times.

Post: Looking to do BRRR for residential multifamily in and around Indianapolis, IN

Post: Advice needed on BRRR strategy in the midwest

Post: Advice needed on BRRR strategy in the midwest

Post: Advice needed on BRRR strategy in the midwest

Post: Advice needed on BRRR strategy in the midwest

Post: Advice needed on BRRR strategy in the midwest

Post: Advice needed on BRRR strategy in the midwest

Post: Does anyone know any good title reps for sourcing deals in RI, MA, CT or southern NH