Buying my first BRRRR

[Carlos Ventura]

Hello everyone, I am fairly new to the Real estate investing world, I have not gotten my first investment property yet although I have some knowledge on how to do it but I am stuck. Can anyone help me with some rules that you think it's important to follow when doing a BRRRR property especially your first ever investment property ?

[Nicholas L.]

@Carlos Ventura

BRRRR is extra tough right now. Prices are still high, contractors are booked up, materials are expensive, and the rates on the refinance are higher than they have been in recent times. If you can do some kind of live-in project that may work but otherwise it's going to be tough to do a BRRRR for your first. Can you house hack instead?

Rules:

-buy a deeply discounted property with the ability to significantly increase the ARV. if you can't increase the ARV significantly, you can't BRRRR.

-be conservative on the ARV.

-include all expenses in your calculations. with a BRRRR you pay closing costs / fees twice - once on the buy once on the refi. you also have holding costs, financing costs, etc. these can get overlooked. watch Tarl Yarber's YouTube videos for a good deep dive on all costs.

Hope this helps