Real Estate Deal Analysis & Advice

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David Conroy
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Roseland Neighborhood BRRR Chicago

David Conroy
Posted Jun 20 2019, 18:48

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $15,700
Cash invested: $42,700

BRRR SFH property. CHA tenants (Section 8). North of 17% Cap Rate. Went in cash and all capital pulled out upon refinance

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

Great returns and ability to continually recycle my capital based on cap rates in the area

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

How did you finance this deal?

Went in cash

How did you add value to the deal?

Gut rehab of the property and then rented it out

What was the outcome?

Refinanced capital out and held onto the investment

Lessons learned? Challenges?

Rent came in lower than expected but I took the rent offer from the CHA since it is 100% guaranteed by the government and there's ZERO need to chase tenants for cash. Learned to do deals with room in your number to be able to be flexible with what the market ends up offering.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Manage Chicago did a great job on the construction, leasing, and management of the facility for me starting the rehab within 5 days of me closing and finishing it in under 40 days. Tenant was identified before construction and inspections with the city were done 45 days from close

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