General question regarding a first-time investor, who is exploring buy-and-hold properties for renovation utilizing the BRRRR strategy.
My question is when obtaining a small MF property (2-4 units), what are some of the best practices for the 'typical' renovation strategy (I.e., provide more sweat equity into your first property, or use a trusted GC to help assist during this process)?
I am asking this because even though utilizing the sweat equity strategy in your first deal may save you money, upfront, thus increasing ROI, how can you eventually ramp up your production after you refinance the property and effectively start actively seeking other buy-and-hold properties using the stack method, to grow exponentially--2 units, four units, eight units, etc.
It would seem that since you are trying to automate your time to manage multiple flips, tenants, etc. what is an ideal way to start off?
Thanks for your time on this, I understand this may be a multifaceted answer, but at its root, from an initial investors perspective, what is the best way to leverage time and money to snowball your personal goals?
Tile is always the best way to save money and it is easy to do with a little YouTube help. The problem is that time is money do to the lost rent. Make sure that you get a few estimates and ask for referrals. Call the customers.... I work in construction and I would tell you that you can find a lot of help on the weekends from large contractor guys for side money. However, cost will be good with great experience but at the sacrifice of time. You would just need to do the math on the time verse cost. For a full disclosure I haven't done any at this point. However, I have been making contacts for weekend work and for all different trades. The math and financing is my issue.