Multifamily Real Estate Investing - Multifamily BRRRR: Is It Worth it To Add Another Unit? | ProjectRE

We’ve seen many investors do a multifamily BRRRR, and while some are more simple than others, adding a unit to your property can make things a lot more costly, and a lot more complicated. Does that mean you shouldn’t ever add extra units? No! Adding units to a duplex, triplex, fourplex or any other multifamily property can dramatically boost ARV, cash on cash return, and monthly cash flow! Today, James Dainard walks us through his recent acquisition, a triplex located in Seattle, Washington. He and his team purchased it for $1.25M and plan to put in half a million dollars in renovations, with an ARV of around $2.3M. This fourplex will cashflow $1,600 a month, not to mention the sizable equity play, adding hundreds of thousands of dollars in value for James and his team. Tune in to hear some of the most crucial factors when deciding to add an extra unit or not, plus what to look out for when making that decision! ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Get Tickets to BPCon 2021: https://www.bpcon2021.com/?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ 12 Creative Ways to Add Major Value to Apartment Buildings: https://www.biggerpockets.com/blog/81906-2?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Subscribe to ProjectRE with James Dainard: https://www.youtube.com/channel/UCEn-t8zRFsGeI4b8X3cX71A ~~~~ Follow James on Instagram: https://www.instagram.com/jdainflips/ or @jdainflips 00:00 Intro 00:22 Should You Add an Additional Unit? 00:49 The Numbers 01:26 2 Important Factors When Adding Units 01:50 1. Check Zoning 02:14 2. Double Check Your Financials 02:40 Why This Property? 03:59 Are You Spending Too Much? 04:52 Hidden Costs 06:39 A Big Seattle BRRRR 08:33 What to Look Out For?