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Griffin Schermer
Pro Member
  • Investor
  • Bloomington, IN
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BFRR: Build Finance Rent Repeat

Griffin Schermer
Pro Member
  • Investor
  • Bloomington, IN
Posted Jan 6 2021, 11:18

Has anyone every tried a method where they build a home, finance it, rent, repeat? This could be stick built, manufactured, or prefab/modular. What kind of problems could arise?

Ex. 1200 sq ft 3 bed/ 2 bath modular build and land cost $100,000. The appraisal comes back at $135,000 so you pull out 75% LTV or $101,250 and you have a renter who is paying down the home while you stick a little extra cashflow in your pocket.

Obviously this is just a sample and not a deal situation I've actually been in...yet. I'm located in Southern Indiana, and after running some numbers on potential deals it seems like this may be possible. Thoughts?

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