Would this brrrr work?
Hi everyone. I just finished my first multi family deal. Super happy coming out on top with a 16% coc return.
So been looking for another. Found a duplex that needs a complete rehab. I actually didn't think twice about it the first time cause it was so daunting.
This atea was a bit different than my first. I had to look at it with different glasses.
Ok so
250k purchase price..... anything in this area with the same specs sells for at least 400k. (Obviously in living condition)
If I could
acquire property for 200k
rehab for 100k
which means I'm in for 300k
If the home appraises for 400k with 80/20 that means I could pull out 320k.
That would cover purchase price and rehab with 20k in my pocket right?
Still trying to completely understand the brrrr method but I think this makes sense to me.
I would really appreciate any feedback guys.
Thanks in advance.
Chez