Small multi-family (2-4 units) buy & hold investment.
Purchase price: $37,000
Cash invested: $150,000
My first rehab/BRRR deal, 2 Unit, End of Group, went over budget by 20%, and after 2 appraisals, refinanced and recouped most of the cash invested.
What made you interested in investing in this type of deal?
Wanted to get my first deal done!
How did you find this deal and how did you negotiate it?
It was a wholesale deal posted on Zillow. Way overpriced but after months of going back and forth we agreed on price and I stepped out on faith to get it done.
How did you finance this deal?
Hard Money Lender. Found a deal that was within 65% of the ARV and funded acquisition and rehab.
How did you add value to the deal?
Almost a full gut rehab with a great contractor who acted as a quasi-PM for me.
What was the outcome?
Great product, did some things out of order with respect to the City permits/inspections but with grace we made it through!
Lessons learned? Challenges?
Buying is where you make money, have comps for the appraiser ready, get a good contractor, leave extra room in rehab.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I worked with an agent to have my rental shown and am happy to recommend my agent and my contractor to others.
@Michael Tucker This sounds like a great deal! Congrats
Thanks @Connor Anderson It was great because I finally got the first real rehab out of the way and I didn't lose my shirt. Grateful for that and the good Lord for seeing it through!
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