Rental Property Investor · Solana Beach, CA · Member since 2019 · 36 posts · 15 votes
I want to employ the BRRRR strategy on Duplexes, Triplexes or Quads to start as opposed to SFRs (but I may start with SFRs) and want to initially limit the use of my own cash to about $50K/deal. Using HML for the balance of the purchase price and rehab I'm looking at a purchase price of around $210K:
Purchase price: $210K - HML
Rehab: $40K - HML (assuming $10K/unit on a Quad)
Down Payment: $50K - My Cash (20% of total HML)
Unfortunately, in the various markets I'm looking at, I'm not finding what I'm looking for in this price range. So, do I bring in a partner (which can sometimes lead to a whole different set of issues) and go after larger purchase price deals or do I start with lower priced SFRs?
Investor · HI · Member since 2017 · 328 posts · 124 votes
7y
I think partnerships are great (and necessary) to grow your investing strategy. If you've never done a BRRRR before, maybe prove the concept with a SFR first. Then take on a partner for bigger projects.