Deal Diary - BRRR 4 unit over 100% cashout :)
Purchased June 2023 for $137,000 legal 4. Property had water in basement, bad roof and units were trashed. In a C-/D area in suburbs. I normally focus on north side of Chicago but a client sent me this asking to co-invest 50/50 and I gave it go. I still plan to focus mainly on the north side of Chicago for cashflow+rent growth+appreciation which are the true wealth builders but this was a fun little cashflow project.
Rehab: The water in basement ended up just being from bad windows and was a pretty easy fix spent about $4000 down there. The rest of the work was actually easy cosmetics + roof and spent about $40,000. Landscaping about $1000. Total $45,000
Rents after rehab now is $950, $650 *kept the one old tenant, $950 and $1050 to a section 8 tenant. Total rents: $3600
The refi appraisal came back at $265,000 so at 75 LTV it is $198,750 new loan amount bringing me $16,750 more cash out then I invested in project! Rate we got was 8.5% but still cashflows and plan to refinance it when rates do hopefully drop. Have no prepayment penalty on loan.
Some after rehab photos...
Most Popular Reply
@Henry Lazerow too many successful Chicago deal diaries! Can you please save some deals for the rest of us!!!
Just curious, which Chicago suburb was it in? Legal 4 unit for $137k...wow!
- Jonathan Klemm
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