BRRR Actual Deal - $2M profit or $15K/mo cashflow: with pictures!

146 Replies

Originally posted by @Christian Nachtrieb :

@Michael Ealy That is super impressive, wow. Incredible job. I'm curious, when you're researching an F area, are there other criteria that you use and look out for other than just potential job growth in the area? What else can one keep a pulse on to get a good sense of updrafts in the quality of the neighborhood?

 One way I did it is by being connected to the politics in the city. I know what the politicians are going to do and where they are about to focus the city's development efforts. You can also ask and see the city's 5-yr master plan.

Lastly, you can also volunteer in your local chamber of commerce and join your local REIA (real estate investors association).

It's a lot of work but after a while, it becomes easy.

Originally posted by @Michelle McFarren :

@Michael Ealy I would keep the property in this case every time, and keep the cashflow! :)

 I tend to agree with you :)

But...if a highly profitable project comes along, I might 1031 exchange it specially if it's a hotel project.

What's I absolutely love about this is that you attempted this in the first place. There are a lot of comments in this thread talking about "taking the money and running." It is apparent that you were very successful in your professional career to bring you to this point and you didn't stop there.

Your goals don't have an endpoint, you're going to keep going until you can't and thats true success.

@Michael Ealy your an inspiration. Thanks for breaking this down for all us.  That’s an amazing deal and I’m pretty sure that plenty of ppl saw that deal and couldn’t make it work.  

Thanks for the mention...lol but I think I’m going to start trying to do what your doing.  


Have you thought of rolling this into a qualified opportunity zone purchase/fund and do the same thing but go for the long term hold?

@Michael Ealy This is what I love about Real Estate. You've been doing this since 1999. I'm intrigued about your newbie phase. Did the young "Michael" ever think he would get to this level? 


It's amazing to me how people have evolved over time in this business. I pray I could thrive to your level someday. I know it comes with time and grit. It's definitely a journey I'm excited to take. 

Well done!! I hope to be on that level someday, or get to the level where I can syndicated deals like that. Right now, syndication is way over my head and all the legalities and red tape is just overwhelming. I wish you lived in Dallas, I'd hit you up in a heartbeat for a mentorship. I think BRRRR is one of the most powerful concepts in real estate and underused in my opinion. My new company's sole strategy is going to be BRRRR or but sometimes instead of renting, selling through owner finance. There is a huge need for owner financing in this country.

@Michael Ealy as to what to do next, based on what you’ve been able to accomplish here I think there’s very few of us that would be more qualified to comment then you! Huge congrats! Love seeing you kill it!

Nice work @Michael Ealy ! Very inspiring!

Place looks awesome. Have you gotten it re-appraised at the $4.4MM yet? $140K per unit seems high for Avondale as I'm here in Cincinnati as well, but based on your NOI and cap rate I don't disagree it could get to that.

Just curious if the bank will get you to that # given expenses are low and if they would "penalize" you for operating it so well given it's a 1960's construction, despite being a total gut rehab. Just curious!

Thanks!

@Michael Ealy newb here so take this with a grain of salt but I say trust your gut it seems to be serving you pretty well! Congrats and keep up the good work. At first glance I would take the passive income and Airbnb the vacant units to families who have children at the hospital. However, I don’t know the market/area there so again I say trust your gut!

Originally posted by @Andre Jernigan :

@Michael Ealy this is absolutely amazing, congrats! Being a Xavier grad and living in Norwood for 4 years I am familiar with Avondale. I’ll have to make a trip back to see what all has changed there

Lots of things have changed.

Of course there are still some bad pockets.

They built a new parking building near the hospital - and it's full and people have to park on the street.

OTR is also booming. Millennials are renting there.

I would never have imagined that happening but it did.

Originally posted by @Andrew Baker :

What's I absolutely love about this is that you attempted this in the first place. There are a lot of comments in this thread talking about "taking the money and running." It is apparent that you were very successful in your professional career to bring you to this point and you didn't stop there.

Your goals don't have an endpoint, you're going to keep going until you can't and thats true success.

 Well said. Sometimes I have to pinch myself.

Originally posted by @Malik Gray :

@Michael Ealy

Congratulations . 1 question what was the original name price before the wholesaler got the reduction?

 Closer to $500K...so the wholesaler really earned his fee ;)