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HURRICANE HARVEY BRRRR SCENARIO
Hello BP investors,
First off, let me say that this website has been an amazing resource for someone like myself that is new to REI. I am working my 4th buy-and-hold and it happens to be my first BRRRR. I live in the Houston, Texas area and have picked up a hurricane Harvey damaged home.
here are the rough numbers
paid 100K
rehab 30K
ARV 200K
Rent $1750 in the area
My offer was accepted sight unseen last night. I visited the property today and while it is a great neighborhood, about 70% of the homes on the street are vacant and damaged. In a typical BRRRR scenario, the comps in the area help to support the cashout refi, but in this situation, I'm assuming it will have a negative impact on me getting a top dollar appraisal. I know appraisals and comps are different things but doesn't the appraisal take into consideration the comp values?
In order to maximize forced appreciation, do I:
rehab as quick as I can, (in less than 60 days) and try to refi hoping the appraisers use comps PRE-Harvey
or
do I rehab and wait it out a year+ before refinancing so that all the homes are rehabbed and values go back to where they were before the storm. (the drawback with this option is I am borrowing some money from a hard money lender)
Your input is greatly appreciated!