Hi! I am a first time home buyer who’s interested in flipping. I’m very new to all of this and recently learned a little about 203k Streamline. After learning about it I immediately saw the opportunity for a Brrrr (if I understand a brrrr correctly) A lot of emotion is built into this because I am a stay at home mom and wife interested in long term wealth building with this but my hubby on the other hand works a 9-5 and just simply want something move in ready that we can call home. Please help me with tips and ideas that will assist me with potentially getting this flip right on the first try allowing me to convert this opportunity into a business and show my husband why he should trust me on this. Or am I misunderstanding the streamline and the brrrr? HELP!!
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
A few things to untangle here, @Katrina Johnson. Are you interested in a flip or a BRRRR? They are different things. With a flip you fix up a property and then sell for a profit. With a BRRRR the intention is to eventually rent out the property for long-term cash flow and appreciation. They both basically start the same way (identifying a distressed property with value-add opportunity) and a "live-in" version of both is possible. Importantly, a property that makes a great flip may not make a great BRRRR and vice versa. You need to know going in what the plan is. Sure, plans can change, but it's important to be as clear as possible at the outset.
The other thing to consider here is how feasible a "live-in" anything is going to be. Living in a construction zone is one thing, doing it with kids is something else altogether. Think long and hard about what that actually looks like. What are your kids going to be exposed to? How much stress is that going to put into everyone's lives? What happens when something goes wrong? And guess what, something always goes wrong!
Woah! All really good points. And my focus was more of a brrrr idea. After living in the home for the required year, rent it out but I see I need to take more than a few steps back. Lots more to learn and understand first. Thanks a lot!