Investment Info:
Small multi-family (2-4 units) buy & hold investment in Linden.
Purchase price: $111,500
Cash invested: $70,000
I purchased this property after completely as successful BRRR on a house in Grand Blanc. Significant renovations were needed but I now have a completely updated turn key duplex that cash flows very well.
What made you interested in investing in this type of deal?
I had been looking for a multi-family
How did you find this deal and how did you negotiate it?
I bought this property less than 12 hours after it went on the MLS. I heard about it from another realtor so I immediately went to see it and then wrote an offer.
How did you finance this deal?
I did a cash out refi of another rental property that I bought and renovated.
How did you add value to the deal?
I bought this property for 21k less than the appraised value. Then I completely remodeled the entire house.
What was the outcome?
Annual cash on cash return of over 12%
Lessons learned? Challenges?
Going into the deal I knew that I needed to replace the furnace. It was an old water heating system that had to go but I didn't factor in enough for the additional duct work that needed to be added for a forced air system. This cost me several thousand extra. My lesson learned is that if you are not 100% sure on the cost of a certain repair or renovation, find someone that will know!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I'm a licensed realtor so I wrote my own offer. I have several very good contractors that I can recommend though!
