Updated about 4 years ago on . Most recent reply
Is doing the brrr the right move for me
Hey all, I'm looking at buying this house and it's a total dump. But it's super cheap for the market right now. I currently own a home and am living in it. It's next to a college so renting it would be really easy. The house I want to purchase I was going to take a hard money loan out through family a member on top of them paying for rehab. I'm hoping to purchase the house for 150k put 50 into it for rehab. The ARV is roughly in the area of 280k-300k. My plan was to buy it rehab it and refinance. But move into the house with a roommate. And rent out my current house because it's bigger and has more beds and baths. I guess my question is, with me moving into the house I'm trying to BRRR, would it still work and be effective since technically I'm not renting it out except for one room? Thanks for the advice and your time.
Most Popular Reply
@Jonathan Greene fair enough most new investors can't see the difference between the crazy good deal and the deal that's crazy. I agree it's important to know yourself and your numbers. An example I had was a property that was listed around 280K need 50K and I thought would have an ARV of 470-480K. Naturally I thought it was a home run I went to see it and I realized it's driveway was not possible to drive up in perfect weather in an SUV. I had been planning to run it as a short term rental and the drive way would have made it basically us rentable. I didn't do the deal or other things that look like a deal but you can tell there is moisture in the walls that will increase the rehab by 50K and take a good deal to a waste of time or a big loss if under capitalized and not discovered in time. I think having enough funds and a good home inspection and contractor that you can trust is a much in the  beginning otherwise you are just gambling.