Wilson St 5-plex BRRRR
Description: In 2018 we purchased a 1912 run down 5 unit purpose built rental on the edge of downtown Victoria, in Vic West. We knew this area was on the verge of gentrification and with that so massive appreciation. After some good negotiations with the seller we agreed to a price and purchased the property with cash for the full amount. After we closed on the property we were able to turn 4 of the 5 suites over right away (the 5th suite was recently upgraded). When the renovations were complete and the new leases were signed we put a mortgage on the property because we had the upper hand, a like-new product with current market rents. Buying it out right is a better strategy instead of financed because most lenders don’t like to see quick refinances. We were able to get 95% of our investors money out of the property and it still cashflows over $2,500/m.
The best part, this area has greatly appreciated since and we have been able to get a HELOC on the property that we are now using to invest into other deals.
Revilo Rd Duplex:
Description: We have many properties similar to this one. An investor we approached said that they want to do a deal on their own but didn’t have the self-confidence to pull the trigger. We offered to joint venture on a project we knew about so that we could teach them everything about acquisitions, strategy, negotiating, renovations, tenanting, and managing the property. They agreed and it was a fantastic and profitable partnership that lead to a great friendship too.
Purchased for $440,000 ($110,000 down payment from LOC). $20,000 cosmetic renovation to maximize rent. The property cashflowed enough to cover the LOC expense and give $500/m to our partner/investor.
We recently sold this property after 3 years of holding it and the partner made a 19% annualized return (the lowest ROI we have given a partner to date).
“I have had the pleasure of knowing Randy and Steve for over 3 years now and I can honestly say that when it comes to real estate investing, they are a couple of the most energetic and enthusiastic people I know. They have earned my trust enough that I am invested with them and it has been a pleasure to work with them. Randy and Steve are completely willing to share their knowledge and are open to any and all questions about real estate investing. Their enthusiasm is contagious and they are constantly working very hard to help other investors”