All Forum Posts by: Andrew Yacka
Andrew Yacka has started 1 posts and replied 2 times.
Post: Small Multi Family Buy and Hold
- Investor
- Kennett Square, PA
- Posts 2
- Votes 2
@Funsho Fakolujo
We basically used the brrrr method and we're able to refinance our lenders money out which included the purchase price, rehab, and interest. We were able to get the Value of the property to a point where the bank was willing to refinance 75% of the ARV which cover the lenders money and costs.
Post: Small Multi Family Buy and Hold
- Investor
- Kennett Square, PA
- Posts 2
- Votes 2
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Pottstown.
Purchase price: $97,000
This was a duplex purchased with private money and refinanced into a long term loan. This required minor rehab and was filled with tenants. We plan to hold this property.
What made you interested in investing in this type of deal?
Cash flow
How did you find this deal and how did you negotiate it?
We found this deal through a mailing campaign focused on high equity, multi-family properties.
How did you finance this deal?
This deal was purchased through private money and they were paid back through a refinance into a traditional long term loan.
How did you add value to the deal?
This deal was purchased below market value as it needed minor work and the sellers were motivated to sell. We added value through minor rehab to the two units and increasing the rent from $625 per unit to the market rent of $1100 per unit.
What was the outcome?
The outcome has been a cash flowing long term rental.
Lessons learned? Challenges?
Expect delays and allow for time to work through issues such as title work, rental agreements, and refinances.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We did not work with any real estate professionals.