Updated about 2 years ago on .
Triplex HML BRRRR in progress
Investment Info:
Small multi-family (2-4 units) hard money loan investment.
Purchase price: $196,080
Cash invested: $39,216
220k to 196k. Not a big drop but big enough to meet the expected 70% ARV criteria needed for hard money. ARV expected based on appraiser was 290k. Currently I remodeled one unit and all mechanicals too. Last repair made is the deck but city is making it hard with permitting. What should have been a 3 month cash out refi is now looking like a 6-9 month. Either way exit strategy is cash out refi at 75%, Refi at 80% (no cash out), or sell and net approx 70-100k (but hate capital gains).
What made you interested in investing in this type of deal?
Pulled a HELOC on a property of mine and had the funds to invest. Either buy a business truck to write off on taxes or more rentals to write off.
How did you find this deal and how did you negotiate it?
Seller posted a desire to sell on Facebook. A couple of months later I reached back out and he had no bites. So we ran numbers together and used inspection and appraisal reports as tools to negotiate.
How did you finance this deal?
RCN capital. Deal number 7! HML.
How did you add value to the deal?
Bought at non updated cost and improved/rehabbed.
What was the outcome?
Still in progress. This is for new investors to join me on this journey and see the outcome. Update to follow in 6-12 months.
Lessons learned? Challenges?
New city/town permit process is a headache and stricter rules and regulations.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
RCN capital Christine Naidoo amazing! Other then that it was just me and the seller 1 on 1 and being open.
