Filling out my profile...
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Rochester.
Purchase price: $76,000
Cash invested: $100,000
I bought an up down duplex in 2016 and remodeled inside and outside. Slow BRRRR strategy in motion now. I have done all my own work, that's about change. I'm in process of pulling $100k out as we speak. Will use this cash for down payment on the next one.
What made you interested in investing in this type of deal?
I have flipped properties in the past and that’s just a job to me. I want something more passive. I’m really thinking I may get into notes when my net worth allows.
How did you find this deal and how did you negotiate it?
It was on MLS for a while. No one wanted it, it was junk. We made an offer and it was accepted.
How did you finance this deal?
I financed this deal with a commercial loan from a local credit union. By the way, commercial loans seem to be easier and worth the extra interest charged.
How did you add value to the deal?
I remodeled the whole building inside and out and then raised rents to market value.
What was the outcome?
$2800 monthly income, almost $200k in equity.
Lessons learned? Challenges?
I have a habit of buying occupied buildings and waiting for a tenant to leave before remodeling. In the future I may try to push that process along a little.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tim Fontneau of Hourihane, Cormier and Associates is my real estate agent and has been for 20 years. He owns lots of small multi families in my area himself so he knows the market.
