GROUP HOME BRRRR - Found a house

[Christina J Allen]

HELLO EVERYONE! 

I have been given the vision of providing housing for the needy. I have been identifying houses that could work with the BRRRR method (or close to it) and I plan on getting 10X traditional rental prices by creating cooperative living environments where I charge by the bed.

I am new to this journey and I have identified a house close to me. I am thinking about putting in offer and I am looking for guidance as I go. I have been blessed with tenured help in the real estate world and I am posting in this forum hoping to have accountability as I face my fears of the unknown. I am currently here:

House purchase price : $125K max (preferably lower) 

Renovation costs : $125K (overestimation) 

ARV: roughly $300K minimum

Refinance: ---- pending analysis---

If you have time, please click the link to see the house and give any insight or things to consider. As always, I appreciate any assistance and guidance in advanced. 

https://redf.in/MEeRV0 

[KC Pake]

Quote from @Christina J Allen:

HELLO EVERYONE! 

I have been given the vision of providing housing for the needy. I have been identifying houses that could work with the BRRRR method (or close to it) and I plan on getting 10X traditional rental prices by creating cooperative living environments where I charge by the bed.

I am new to this journey and I have identified a house close to me. I am thinking about putting in offer and I am looking for guidance as I go. I have been blessed with tenured help in the real estate world and I am posting in this forum hoping to have accountability as I face my fears of the unknown. I am currently here:

House purchase price : $125K max (preferably lower) 

Renovation costs : $125K (overestimation) 

ARV: roughly $300K minimum

Refinance: ---- pending analysis---

If you have time, please click the link to see the house and give any insight or things to consider. As always, I appreciate any assistance and guidance in advanced. 

https://redf.in/MEeRV0 

Hi Christina,

It's great to see you're considering a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) property for investment, especially providing housing for the needy! This strategy can be highly rewarding, but it's wise to approach it with some key considerations in mind.

Firstly, regarding the potential structural damage, I noticed in some of the ceiling pictures.  It is essential to get a thorough inspection. Roof repairs can be costly, so knowing the extent of the damage upfront will help you budget accurately. Sometimes what seems minor could be more significant upon closer inspection (mold, new code rules for insurance purposes "hurricane clips", etc.  Speaking of insurance, make sure you do some shopping.  Florida has become very difficult and expensive for property insurance.

Another critical factor is the lead time for contractors. Currently, the demand for skilled contractors is high, which could mean a longer wait time before starting your rehab work. This delay could impact your timelines and carrying costs, so it's something to factor into your overall budget and strategy.

Here are some key points to keep in mind:

Budgeting: Ensure you have a realistic budget, including potential structural repairs, and large appliance replacements.  Also, include a cushion for unexpected expenses.

Timeframe: Be prepared for possible delays in getting contractors. Plan your finances to account for a longer holding period before the property generates rental income.

Market Research: Understand your local real estate market well. This knowledge will be invaluable in making informed decisions about renovations, refinancing, and renting out the property.

Exit Strategy: Always have a plan B. In real estate investing, it's essential to be prepared for various scenarios.

Best of luck and keep us posted on your progress.