All Forum Posts by: Samantha McEntire

Investment Info:

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

Purchase price: $330,000
Cash invested: $110,000

Purchased, rehabbed and now using one unit as a vacation rental and the other as long term rental. Cash flow is $1,100/month

How did you add value to the deal?

Full rehab of the property, ARV $480k

Plan is to cash out refi to fund the next deal

@Lindsey Keller wow- intriguing info on the storage containers, that's awesome. Have never looked in to those kits but seems like a good turn-key way to get several properties on a lot. 

Hi Lindsey- I'm considering adding an ADU in the back of my sfh in Phoenix to rent and have been considering this same thing. From quotes I've received for classic stick build its around $75k for 500sf. My biggest consideration is ARV so even if you have to spend well over 100k you can always cash out refi to recoup some/all of the cost. Look forward to hearing other comments and seeing if anyone has insight into shipping containers or modular builds.

@Clayton Smith Thanks for the insight! I just got the property back in November and only made modest improvements so probably only have 20k in equity or so but that still might help the situation so we'll see. When acquiring the loan do you know if you have to use a GC or if I could sub out the work myself?

@Clayton Smith this is an awesome break down. Have been considering BRRRRing with land as multifamily is so competitive in my area. Seems like a great way to get a cash flowing property, time to start talking to banks in my area. I just rented out a property and plan to build a guest house in the back. Just need to find the funding. Do you think a bank would do a similar loan? If construction costs are $75k and the bank would do 85% LTC so I would just need ~10k down? I could rent the 1bd guest house for at least $1000/month so would improve my cash flow significantly for the property. Thanks for your help!

Curious about this as my plan was to add an ADU onto my recently purchased single family rental house, rent it out to increase cash flow and then BRRR to move my cash to my next investment. Dont want to operate illegally but also wanting to get my cash out of this investment and maintain cash flow.
@Austin G. from the people I have spoken with that isn't an option either.. but let me know if you have heard differently.

@Steven Foster Wilson thanks for the input. Ended up moving forward with a single family residence but will check out that article because I am curious on how to maximize my appraisal after adding a unit and understanding which renovations will increase the $ the most. Cheers!

@David Stock Thanks for the response. I didn't end up moving forward with that deal but am in escrow on a single family home with a small art studio in the back that I will convert to another unit to rent. Cash flow should be $180 before the added unit. Would love to connect as I am looking to get bids on the added unit and some upgrades to the house- I'll shoot you a message!

Thanks for sharing! This is my plan as well, purchasing a SFR for STR and then building out a unit in the back (already plumbed and wired) for LTR for added stability. This seems to be the only way I can get good cash flow in my area. Cheers!

Thanks for posting! I have been considering renting by the room for enhanced cash flow in this market where it is hard to get strong cash flow. Would love to connect and find ways to work together as I am just getting started in building my rental portfolio. Do you have any book recommendations that guided you in setting your goals/5 year plan? Cheers!