First BRRRR complete, on to my second investment property!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Southington.
Purchase price: $247,500
Cash invested: $14,000
Soon moving from my first 2-family house that I house hacked into my second property, which I again used an FHA loan with 3.5% down to purchase. I am open to repeating this cycle (BRRRR) again, or creatively financing the next venture.
What made you interested in investing in this type of deal?
After finding success from the first house hack, I decided I had gone through all the motions and was ready to rinse and repeat!
How did you find this deal and how did you negotiate it?
Found on the MLS. It had sat on the market a while (Likely because the pictures taken were sub-par and there was minor damage to a detached garage. I repaired the damage prior to closing (per our agreement). Time on the market and the garage damage helped me negotiate.
How did you finance this deal?
FHA loan
How did you add value to the deal?
In the process of planning the install of new HW heaters, 1 bathroom rehab, some floor refinishing, and cosmetic repairs (light fixtures, curb appeal foundation plants). This should allow for higher appraisal when I reach the time to refi into conventional package.
What was the outcome?
Will keep you posted!
Lessons learned? Challenges?
Completing work on a tight time window can be stressful, and it is difficult for a newbie to estimate labor hours needed for a project!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Kevin Harris from Keller Williams-West Hartford office.