Huntsville Duplex BRRRR

[Chris Mignone]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $85,000
Cash invested: $76,000
Sale price: $224,000

Our first property in Huntsville turned out to be the ideal BRRRR. We paid 85k for a duplex and had to get the tenants out. Took about 6 weeks to get the property vacant and start renovations. The house needed a roof, siding, soffits, fascia, etc outside. Added HVAC to both units and laundry hookups to one that didn't have it. Medium grade renovations on the inside of both units, but not a full gut. Needed some structural crawl space work done as well. We ended up all in for about 161k including holding costs. Property appraised for 224k after repairs and we got 75% cash out on the refinance for a 168k loan. So we got our cash out and walked away with about 7k profit tax free on the refi. Both units are rented out for $900/month and we'll cash flow about $400/month with contingencies in place. I have been wanting to accomplish a BRRRR like this for years and am happy to report I have achieved the dream!

What made you interested in investing in this type of deal?

I have always wanted to complete a successful BRRRR

How did you find this deal and how did you negotiate it?

Marketed direct to seller. Older, tired landlord.

How did you finance this deal?

My own cash

How did you add value to the deal?

Complete remodel

What was the outcome?

Couldn't have worked out better

Lessons learned? Challenges?

The lender was a bit of a nightmare but we got the deal done and the terms worked out in our favor