New to Real Estate · Cleveland, OH · Member since 2019 · 40 posts · 2 votes
Can you BRRRR with $20,000 in Cleveland, Ohio. I recently saw a video by Brandon Turner who mentioned you can BRRRR with $30,000. Which made me think is it possible to do so here in Cleveland with $20,000
Can you BRRRR with $20,000 in Cleveland, Ohio. I recently saw a video by Brandon Turner who mentioned you can BRRRR with $30,000. Which made me think is it possible to do so here in Cleveland with $20,000
BRRRR with $20,000 isn't practical. Issue is with a BRRRR you need to be able to buy the property & fund the rehab costs in cash. There isn't anything in this market that would be worthwhile to attempt to do at that price point. You'd need to find something for probably less than $5,000 & those types of properties are usually negative in value & need $30,000-$40,000 in renovations to become livable. These types of deals are also not for new investors. Only seasoned investors should be attempting these types of deals.
What you could do with $20,000 though is use it as the down payment on a nice $70,000-$80,000 duplex in a C or B neighborhood. That'd be the very best use of those funds in my opinion.
Yes, but can you afford to lose $20,000 if it all goes to crap? That is the question to ask. How much can you lose on a deal and can you afford to lose it. Don't invest what you can't afford to lose.
Can you BRRRR with $20,000 in Cleveland, Ohio. I recently saw a video by Brandon Turner who mentioned you can BRRRR with $30,000. Which made me think is it possible to do so here in Cleveland with $20,000
BRRRR with $20,000 isn't practical. Issue is with a BRRRR you need to be able to buy the property & fund the rehab costs in cash. There isn't anything in this market that would be worthwhile to attempt to do at that price point. You'd need to find something for probably less than $5,000 & those types of properties are usually negative in value & need $30,000-$40,000 in renovations to become livable. These types of deals are also not for new investors. Only seasoned investors should be attempting these types of deals.
What you could do with $20,000 though is use it as the down payment on a nice $70,000-$80,000 duplex in a C or B neighborhood. That'd be the very best use of those funds in my opinion.
Get creative! See if you can get owner financing or private lending and use the $20K as a down payment. You will need money for rehab expenses. But, I know some riskier investors that finance rehab cost on 0% APR introduction credit cards. Once the rehab is done, place a tenant in the unit and refinance with the bank to pay off the owner/private lender and credit card. The rest would be your profit to acquire another property. Make sure you know your numbers to ensure you can back your lenders.
It will be hard but not impossible if you have the right deal. I recently did a rehab where the purchase price was $56,500. I found a local bank willing to do the loan with 10% down. My rehab costs were roughly $30k. I used a combination of cash and a HELOC loan I already had. After repairs the property appraised for $125k so I was able to refinance and get all of my cash back and I'm still able to cash flow. In this case I didn't use over $20k of my own cash but did have a HELOC to help which is now paid off and I'm ready for the next deal.