Starting out as turnkey property investors in SFRs, we decided to invest closer to home, in multifamily and use the BRRRR method last year. It took us almost a year to find the deal - a fully rented 4-unit in Allentown, PA that can use some work in order to increase rents (thanks to BP we found the deal off market from an investor on BP). We closed on the deal in January this year and slowly renovated it as existing tenants moved out and finalized the refinance this month. The numbers are below:

Purchase price: $158,000

Renovation cost: $10,000

ARV: $225,000

Rents: $865, $700, $875 and $850

Lessons learned:

- On market deals are very competitive and the numbers rarely, if ever, would work, especially for a BRRRR, in the market we are investing.

- Even within 1-4 units, a 4 unit may appraise better per unit than 1-3 units.

- We purchased the property initially with conventional financing and refinanced again with conventional financing. Some banks / people will tell you that this cannot be done, but you just have to keep trying to find the bank who does.

- In order to keep doing this successfully we need to create a "funnel" like Brandon Turner always says. We are trying other things besides looking at the MLS as a result.

- Even though we are diehard buy and hold investors, we are opening up to fix and flip now to take advantage of the sellers market. With the proceeds we can hopefully buy more cash flowing rentals which are not necessarily BRRRR material.

- Networking is SUPER important because this is definitely a relationship business.

Happy investing!