Updated over 5 years ago on . Most recent reply
Our first Brrrr in Atlanta, GA!
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $210,000
Cash invested: $40,000
Brrrr! Bought a duplex and a triplex in a good Atlanta rental market. 5 apartments total. One is rented long term and the other 4 are all short term rentals. Rehab costs were higher for a lot of reasons, and we left around $40K in this deal. We still used less cash than we would have on a traditional purchase. After paying PM fees, utilities, and the mortgage, we still clear $3-$4K every month. Most importantly, we learned a ton, and our construction process is getting stronger.
What made you interested in investing in this type of deal?
Have wanted to do an intentional brrrr for a long time. We had a flip that turned into a brrrr on accident once. Still worked out!
How did you find this deal and how did you negotiate it?
Found this off market from a wholesaler. They asked $130K per unit. After inspecting the unit, we asked them to come down to $105K per unit due to a ton of repairs we found.
How did you finance this deal?
Cash for the acquisition. Private money for the construction.
How did you add value to the deal?
We renovated from top to bottom and added a basement unit.
What was the outcome?
We left $40K in the deal but we have a nice cash flowing asset that has brand new everything.
Lessons learned? Challenges?
Went through many sub contractors and also learned a lot about inspections/permitting. Construction took longer to complete for a lot of different reasons. We will be way stronger on the next one.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We own our own brokerage and construction company. Southeast Mortgage did the refinance for us. They are great and investor friendly.