Small multi-family (2-4 units) buy & hold investment.
Purchase price: $65,000
Cash invested: $3,084
This was my first Solo deal. A nice duplex in Northeastern PA. I bought it with hard money and inherited two tenants. The one moved out immediately and we renovated and increased rents by $100. We also redid the siding and some windows with the construction portion of the hard money loan. Second tenant moved out 6 months later, we renovated that unit and increased by $150. Refinancing has been a disaster as COVID-19 shut down all appraisers in PA. I finally closed on refinance with a private bank loan, 80% LTV at 4.5% for 30 years. Appraisal came back slightly lower than what I wanted (92,000) so I was left with $3,000 in the deal, but still a home run!
What made you interested in investing in this type of deal?
How did you find this deal and how did you negotiate it?
found on MLS, offered just under list and they accepted. Further worked price down after inspection.
How did you finance this deal?
Hard money at first
How did you add value to the deal?
Re-painted exterior, did minor cosmetic upgrades and flooring to interior of units.
What was the outcome?
BRRRR and ended up with cash flow of $500/month, along with only $3,000 left in deal.
Lessons learned? Challenges?
Biggest challenge was getting refinance done. COVID played a large factor in banks not wanting to close.
@Chris Lounsbury congrats on such a successful BRRRR! I am a local wholesaler in the Scranton/Carbondale area. Wanted to see if we could get your email to receive our investment opportunities? I actually have a great off market duplex opportunity at the moment too!
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