All Forum Posts by: Shane Blackshear

I'd like to hear from anyone who attempted a BRRRR but the rehab cost were too much to refinance when you were done. If you're appraisal price didn't/won't meet the 75%-80% LTV mark. What did you do? Other than paying down the debt, were there any other options? I have a feeling this is a common issue.

I have properties in both Austin and Killeen. I think this depends on what your goals are. IMO If you're looking to buy and hold then appreciation doesn't matter as much. Also, you can buy a few properties for the price of one in Austin. 

Hi Kristina, I'm a fellow Austinite, and investor/agent. I found my niche through house hacking. Our first home was a duplex. We rented out the other side. A few years later we did it again. We live in a SFH now but mutli-families have become my niche. For me the math just makes sense with multi-family units.

Thanks @Dmitriy Fomichenko!

Not all of them, but close. But we don't like in it anymore so both units are rented. 

This was a house-hack and our second home. It's a duplex with 3bed/1.5baths in each unit. We moved into the top unit side and inherited renters on the bottom floor (bad move I might share about in another post). We made some improvements to the top unit before moving in: new floors, paint, and appliances. We moved in 2018 and kept this duplex. We've had a few tenants and it's cash flowed nicely. 

Investment Info:

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

Purchase price: $110,825
Cash invested: $30,000

This was a house-hack and our first home. It's a 2/1 - 1/1 duplex. We moved into the 2/1 side and leased out the 1/1. This was a foreclosure. We made a few small improvements when we first moved in, and then tons of improvements over time. When we moved in 2015, kept this duplex and have leased out both sides ever since. I've included some before and after pictures.

We've refinanced a few times and did a cashout once. Currently it's cashflowing at $1,047 a month.

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

Homeownership and investing was always a goal. In 2013 I was seeing the prices in Austin skyrocket and knew I needed to get into the market asap. I also saw that buying a duplex instead of a SFH would almost pay for itself with rent from one side.

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

I found this deal on the MLS. It was a foreclosure. Because of the way the foreclosure worked, the price was non negotiable so the only question was could I make the needed improvements and still make the numbers work.

How did you finance this deal?

I financed this through a local community bank. I had to put down 20% and the interest rate wasn't great, but because of this properties condition this was about my only option. After a year or so we refinanced with traditional lender at a much better interest rate.

How did you add value to the deal?

Because this property was distressed, it wasn't hard to see what could be done to add value here.

What was the outcome?

We made tons of improvements when we lived in the duplex. Also, I'd make a few improvements between tenants on the other side. Now we have a what is IMO a wonderful lease property.

Lessons learned? Challenges?

-1/1's are very easy to lease!
-Make your money on the front end of the purchase!

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

I'm an agent myself.

Thanks Andrew!

There is a lot of discussing about valuing commercial property for purchasing, but what about the other side? How do you determine an asking price for an apartment complex or other commercial property? Thanks.

@Charlie Fitzgerald Thanks I just sent you a message via your website.