Updated about 10 hours ago on . Most recent reply
Finally, a BRRR project that worked in Oklahoma City
Investment Info:
Small multi-family (2-4 units) hard money loan investment.
Purchase price: $200,000
Cash invested: $48,000
Sale price: $370,000
We purchased this duplex off-market from an out of state seller. That was a ton of deferrend maintenance along with foundation issues. We used a hard money loan for 6 months to stabilize the property. After purchase, we used the draw funds for exterior paint and soffit repairs, new electrical panels, foundation work, new subfloor and carpet and interior paint. One unit rents for $1485 with an existing tenant. We found a tenant for the occupied unit at $1595/month. When rolling into a DSCR loan, the property appraised at $370,000. We were able to pull out $24,000 at closing with a 75% loan to value loan
What made you interested in investing in this type of deal?
The out of state seller was in a pickle with no funds to make necessary repairs and a lack of trust in the current property manager to correct the outlying issues. We were able to help a person in a tough spot but get the deal at a price that made sense.
How did you find this deal and how did you negotiate it?
The seller found us through our Carrot site. We were able to drive by and preview the property before making an offer on it. We gave the seller the price she wanted
How did you finance this deal?
Hard money loan for 6 month to fund the purchase and rehab
How did you add value to the deal?
New exterior paint and soffits, new electrical panels, new subfloor on second floor and significant foundation work
What was the outcome?
The property appraised at $370,000 when we rolled the hard money loan into a DSCR loan
Lessons learned? Challenges?
We tried to sell the property for $330,000 on the MLS and buyers proved to be fickle so we learned its better to keep and stabilize the asset instead of try and flip it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Defiance Capital in Tulsa, OK
