Updated about 4 years ago on .
Under rented lake town 3 plex
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $525,000
Cash invested: $275,000
Joint venture purchase 3 plex. Under rented and not cash flowing when we bought, but following the BRRRR strategy will hopefully see a big increase in rent which should generate about $1,000/m cashflow once completed.
What made you interested in investing in this type of deal?
The property was under rented, but should cashflow very well once we get rents up to market value.
How did you find this deal and how did you negotiate it?
A colleague was contracted about the off market deal by a realtor that knew the owner.
How did you finance this deal?
Unfortunately, because the property was so under rented, we needed to get a high interest short term and put 40% down. Once rented at market value we'll refinance at lower interest rates and be able to recouple a lot of the down payment.
How did you add value to the deal?
Minor renovations and major increases to rent.
What was the outcome?
We're halfway through getting rents up. We will effectively double the amount of income produced by the property, taking it from cashflow negative to generating about $1,000/m