All Forum Posts by: Cassidy Burns

I think the BRRRR strategy is best used in the primary residence space.

Buy a single family house with 3-5% down (conventional or FHA) that needs some cosmetic improvements but already has a 4 bedroom/ 2 bathroom layout.

Paint, new kitchen, bathroom updates, and add a 1/2 bath on the main level. 

 (~$75,000)

LIve there for 1-3 years, open up a LOC on the property, and then move out.

I don't have an acronym for this yet, but it's very similar to BRRRR but instead a longer time horizon and utilizing a HELOC instead of Refinance.

Join us this month at our DMV Real Estate Investor Meet UP

January 25th 

6:30-8pm

Port City Brewing 

Alexandria, VA

I'll be going through BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

We'd love to have you join us and 30+ like minded real estate investors in the Washington DC, Arlington, Alexandria, Northern VA areas.

Register Here: 

https://docs.google.com/forms/...

Hi @Richard H. White II we will be hosting our next investor meet up in Alexandria, VA on Wednesday January 25th.

Marketing will be posted soon! Hope to see you there. 

@Michael H. Cook can help! 

BP,

Crazy to think that starting January 1, 2023, you can use a FHA primary residence loan to purchase a small multifamily with the following max loan amounts in Washington DC:

Duplex- $1,394,775 loan amount

Triplex- $1,685,850 loan amount

Quadplex- $2,095,200

The triplex and the quadplex are significantly restricted due to the "self sufficiency test" , making the Duplex the most realistic option.  

You can buy a property a little north of $1,400,000 for only $50,000 down! Crazy!  

I do believe that the sweet spot in the DMV to be both break even, keep your living expenses low while you are living there, and have great appreciation growth is the duplex (IN PARTICULAR AREAS) for $900,000-$1,150,000

Hope this helps you buy a duplex in 2023 in Washington DC, Alexandria, Arlington, or other high cost area surrounding areas!

Happy Investing

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,625,000
Cash invested: $358,000

-17 Unit Mixed Used Multifamily Asset
-15 Rental Apartments ranging from studios to 2 bedroom flats
-2 Commercial Storefront both on mid term leases to 2026 (Flower shop & American Indian Cafe)
Value add opportunity by raising rents over time with slight renovations. All residential apartments $175-$225/month below market rate rent.
Current: $12,375/month
Projected: $16,100/month
-We will be adding 1 unit in the storage closet as well.

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

We are actively buying mid to large size multifamily in the Harrisonburg / Shenandoah Valley markets.

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

Brought to me off market by a broker. Original price was $1,700,000. We agreed to terms at $1,625,000

How did you finance this deal?

Commercial financing.
Terms:
25 Year Ammorization
20% Down ($325,000)
5.975% interest rate

How did you add value to the deal?

We will add 1 unit, converting to a 18 unit building, and then getting all residential units to market rent. Currently under rented by ~$175-$225/unit

What was the outcome?

Just acquired.

Lessons learned? Challenges?

Insurance is getting more expensive! Pro Tip: during underwriting, make sure you are underwriting for the tax bill to increase at year 2 following acquisition.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,625,000
Cash invested: $358,000

-17 Unit Mixed Used Multifamily Asset
-15 Rental Apartments ranging from studios to 2 bedroom flats
-2 Commercial Storefront both on mid term leases to 2026 (Flower shop & American Indian Cafe)
Value add opportunity by raising rents over time with slight renovations. All residential apartments $175-$225/month below market rate rent.
Current Rents: $12,375/month
Projected Rents: $16,100/month
-We will also be converting a storage closet into another 1 bed/ 1 bath unit which will drive $800/monthly rent.
Amazing location, within walking distance to James Madison University (JMU) and located in downtown Harrisonburg, VA.
Long term buy and hold for us.

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

We are actively buying mid to large size multifamily in the Harrisonburg / Shenandoah Valley markets.

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

Brought to me off market by a broker. Original price was $1,700,000. We agreed to terms at $1,625,000

How did you finance this deal?

Commercial financing.
Terms:
25 Year Ammorization
20% Down ($325,000)
5.975% interest rate

How did you add value to the deal?

We will add 1 unit, converting to a 18 unit building, and then getting all residential units to market rent. Currently under rented by ~$175-$225/unit

What was the outcome?

Just acquired.

Lessons learned? Challenges?

Insurance is getting more expensive! Pro Tip: during underwriting, make sure you are underwriting for the tax bill to increase at year 2 following acquisition.

Welcome @Dalyn Allen thanks for attending the investor meet up last night!  

Talk soon. 

1000% correct! This is how I purchased my duplex in DC.  Was listed for $800,000, I got it under contract for $854,000 and it appraised for $970,000!

Great read. Good job Russell 

HI BP,

We are hosting our next DMV investor meet up on December 7, 2022 at 6pm.

These events have been amazing, having 45+ individuals learning about short term rentals in the Shenandoah Valley last month.  

This month, I will be teaching about Multifamily Real Estate Deal Analysis.  If you are interested in multifamily , you won't want to miss this! 

The best part? It's VIRTUAL, so you can watch/ listen/ learn from anywhere.  Invite a friend, business partner, or spouse. 

We hope to se you there. You must Register at the link in order for us to send you the link!

https://docs.google.com/forms/...