BRRRR in Cleveland, OH???
I have the opportunity to buy a small single family property that is located in a nice town in the suburbs of Cleveland and I wanted to get some feedback from the community as to whether or not this property would be a good candidate for the BRRRR strategy.
Here are a few bullet points on the property:
- Acquire for $100,000 Cash
- 1960s Ranch Style, 3br 1.5ba, 1140 sqft w/ unfinished basement and 2 car garage
- 3+ acres
- It is currently rented for $1200/m
- I believe rent could be raised to $1300/m over the course of a year
- Recently appraised for $170,000 (I don't believe anyone would actually pay this much for it, comps are closer to 140k)
- Needs 30k in improvements in my opinion (appliances and updated bathroom)
My question is as follows...Is this property a good candidate for a BRRRR deal? The home is perfectly habitable as it is and I do not feel that a major improvement to it will yield significantly higher rents (especially in this area).
I put this property in to the BRRRR Calculator but I'm getting a negative result for cashflow afterwards and I feel like I made a mistake along the way.