Skip to content
Real Estate Deal Analysis & Advice

User Stats

474
Posts
577
Votes
Joseph Cornwell#1 Real Estate Success Stories Contributor
  • Real Estate Agent
  • Cincinnati, OH
577
Votes |
474
Posts

Latest Duplex BRRRR Deal!!!

Joseph Cornwell#1 Real Estate Success Stories Contributor
  • Real Estate Agent
  • Cincinnati, OH
Posted Dec 11 2018, 08:18

Here is my current project on another BRRRR duplex in Deer Park, Ohio just outside of Cincinnati. I wanted to share the back story on how I picked up this off market deal with hopes to inspire other investors and hopefully add value to your investing!

For those who I have not met yet on BP, I am a police officer/real estate agent/MF investor in a small town near Cincinnati, Ohio. While out on patrol I was dispatched to this home for a burglary report. Long story short, this lady inherited this house that had sat vacant for 18 months, and she believed an ex-roommate of her late brother had broken a window out to steal some beer and a TV. She was crying and explaining this house was a money pit for her, she had no money or knowledge to fix it up to sell it, and just hoped someone would burned it down honestly.. I know telling a cop this... 

I explained to her that Deer Park is a great real estate market and she could sell this home as is. I also explained that I am a real estate agent/investor and buy and sell homes in this neighborhood often, if she would like my help. I gave her a card, and took the report. She called me later that same day and asked if she could get 50k for this duplex. I told her I would would be willing to buy the home, but I wanted to bring my contractors through it to price out renovation cost. After pricing out the entire renovation, which includes all new plumbing, electrical, framing, insulation, interior and exterior work, and a complete cosmetic gut and rehab, I could pay her 40k. She was extremely happy to be rid of this money pit, and I was adding a great BRRRR deal to my portfolio.

The numbers:

Final purchase price: $39,000.

Rehab budget: $60,000.

Current as completed appraisal value: $155,000.

Market rents: Unit 1 (2/1, 850 sqft) $875, Unit 2 (1/1 650 sqft)  $675. Garage for rent (20x20) $100+/mo

Total: $1650+/mo

Based on my current projections, after renovations, and refinancing to a 30yr fixed conventional mortgage. I will cash out around $5,000 in profits, have 25% equity with zero money left in the deal, and cash flow around $400/mo after all expenses. This should work out to be my best deal yet.

Thank for you taking the time to read my story, my hope is that you will take away a few points. Regardless of your profession, you need to be telling everyone what you do and what you are looking for, I have found a few deals this way. If no one knows, opportunity cant find you. There are still deals out there, they are harder to find, but deals like this are out there and do happen all over the country everyday. Even though I got a great deal on this duplex, this is a massive project that will take months to complete. So put yourself in a position to take the opportunities that life will present to you, and make deals a win-win anytime you can. I got a great deal, she got rid of a massive liability with zero cost or effort. 

I will post some before and after photos of the project as I have them. I would love to hear your thoughts and projects you are working on too!

User Stats

70
Posts
26
Votes
Pearly Tan
  • Rental Property Investor
  • NJ
26
Votes |
70
Posts
Pearly Tan
  • Rental Property Investor
  • NJ
Replied Jan 4 2019, 11:20

Sweet deal, thanks for sharing your success story. Can't wait to see the pics post-rehab. Do you mind if I ask what the interest rate is on your loan? I am also in the process of acquiring a MF.

User Stats

67
Posts
14
Votes
Garrett May
Pro Member
  • Investor
  • Cleveland, OH
14
Votes |
67
Posts
Garrett May
Pro Member
  • Investor
  • Cleveland, OH
Replied Jan 7 2019, 12:55

@Joseph Cornwell Congratulations on your BRRRR deal.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

474
Posts
577
Votes
Joseph Cornwell#1 Real Estate Success Stories Contributor
  • Real Estate Agent
  • Cincinnati, OH
577
Votes |
474
Posts
Joseph Cornwell#1 Real Estate Success Stories Contributor
  • Real Estate Agent
  • Cincinnati, OH
Replied Jan 8 2019, 10:45

@Pearly Tan Currently floating around 6% this is a monthly adjustable rate based on the amount drawn for construction, its interest only, balloons in 24 months. 

User Stats

1
Posts
0
Votes
Kim Babb
Pro Member
0
Votes |
1
Posts
Kim Babb
Pro Member
Replied Jan 9 2019, 18:22

Great BRRRR example! Thanks for sharing.