Monster 3 unit BRRRR complete!

123 Replies

Hey,

You mentioned that you had to fix the foundation? Just curious what was wrong with it, and was it a big part of the renovation budget? I am currently looking at a multifamily with foundation issues. Some people say not to touch them and they scare some away but it could be an opportunity for someone that is willing to do the work.

Thanks.

I've seen people have been asking how to find a solid BRRRR... I suggest try getting cold callers and ones that will work consistently every day and you'll get all the BRRRRs you can handle.

Well done you fixed the mechanical correctly most flippers cobble mechanical together just enough to pass inspection.

Originally posted by @Cody Kahl :

Hey,

You mentioned that you had to fix the foundation? Just curious what was wrong with it, and was it a big part of the renovation budget? I am currently looking at a multifamily with foundation issues. Some people say not to touch them and they scare some away but it could be an opportunity for someone that is willing to do the work.

Thanks.

There was one section of the foundation that was badly buckled due to a tree growing right next to the property.  It only affected one part of the building.  I removed the tree and had a foundation company come in to fix the damage.  What they recommended was carbon straps.  It ended up costing about $3k.  It definitely doesn't look pretty but they gave me a lifetime guarantee and I'm comfortable with safety and all that.  Plus, it is in an unfinished basement, in a section that I don't allow anyone access to.

This looks great! Congrats! I drove by it the other day and it looks fantastic.  I also used the portfolio lender that @Kyle M. suggested. I got the 80% on my last BRRRR also and they are already helping with another one. Keep up the great work and thanks for all the helpful info you always give!

Inspiring story! Congrats, and thanks for sharing! After reading the story and all the posts, I got the impression that it's probably a good idea to start off doing a few single family deals, and build good relationship with lenders from there before getting bigger projects that requires to set up a LLC and get loans through LLC.

Wish you continued success on the next ones!

@Kyle M. Amazing! Question - as you were revising your numbers during reno, in your calculations, did you project the ARV and rents you ended up receiving or were you just riding on a leap of faith? You mentioned that estimating rehab cost and ARV were your biggest takeaways from the project so I'm guessing you went with the "leap of faith?" strategy. lol

Originally posted by @Franky Aikens :

@Kyle M. Amazing! Question - as you were revising your numbers during reno, in your calculations, did you project the ARV and rents you ended up receiving or were you just riding on a leap of faith? You mentioned that estimating rehab cost and ARV were your biggest takeaways from the project so I'm guessing you went with the "leap of faith?" strategy. lol

 I suppose it was a bit of a leap of faith.  But I would argue that it's always a leap of faith, in a way.

@Kyle M. I admire your pain with taking on a renovation project such as this.You, apparently ,were given an avalanche of opportunities to create a place of pride and long term hold if you choose. My build out is no where near yours ,but with no luck a tree will go through it and I will get to cash flow with the insurance company.

In June , I purchased a triplex. All 3 units need heavy repairs and change outs. Im going through (hopefully ) the worst one. Originally, spent some money on due diligence for a bug man and an inspector to look over the place. Even though I'm a contractor, I like a second set of eyes on the place to see if I was blinded by my "want" of the property. A bit of advice to newbies, Check out beyond the home. Landscape, Septics, overgrowth, water run off areas, power easements, and of course the adjoining properties. When your property is over 1 acre , many things can grow up and eat away at budgets.

This complex was bought with a Heloc and with 2 units already lived in cash flowing, They will cover the payments, insurance, taxes and overhead of a property management company and most of the repairs on the first unit for the first year. After going through the first one, I know how the next 2 will be rebuilt, by another contractor. 

AT 105 miles one way commute to this project, it's motivated me to look into local help. I now have to calculate my man hours  for this unit. I'm sure it will be about min.wage(not 15$/hr) when after looking at comparisons for the next 2 units.

Love this deal. I'm interested on if you would recommend getting the shower tiles painted like that - we've got an ugly shower in a home and I'm looking for options other than replacing tile. 

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