5 Unit apartment building BRRRR
Hey all,
Wanted to share our most recent success that had some lessons learned along the way (as they all so...). In March we bought a nearly vacant 5 Unit that my contractor said would take 2 to 3 months to refinance. He was going terribly slow and I did everything I could to get him and his team there more, but he had every excuse in the book. We paid 300k and put 70 into it and the original as complete appraisal was 445k because of the rents they assigned to it. This would not have been high enough to do a BRRR but I knew we'd get what we needed because I knew we could rent the units for more than the appraiser projected. Our contractor didn't finish till November. Needless to say We weren't happy with him, though he did do a lot for relatively little money. We got the building rented for $4,900 a month for the 5 units and reappraised (on our dime). The appraisal came back at 530k, we pulled back out the money we had in it to go find another deal.