I have 3 properties i have inherited from my father which are free and clear. All three need rehab badly but i personally do not have the money. The 3 properties currently have tenants. Can i use any part of the BRRR strategy to help fix and gain better passive income?
Are there mortgages?
I would save every single dime they produced until you have a nice reserve. At the same time, come up with a plan and a team. When you are ready, remove one of the renters, renovate, and rent the property at market rate. Rinse and repeat.
After they are all renovated with solid tenants in place, then you can talk to a lender about refinancing to pull out equity.
mortgages are all paid off. but the strategy is sound. thank you!
I am making the assumption these are single-family properties in areas you want to be in. Unless there is something with your situation where you cannot get credit, I would talk to a few local community banks (business banking department) about funding options. A term loan with an initial interest-only period, a revolving line, etc. Then you can start at the 1st "R" in BRRRR. There are many more layers to this situation if it is your first project, so make sure you do a lot of learning before diving in. Good luck!
Yes my credit is pristine. Just wanted advice on where to start because my family didn't use any strategy per say and since i newly inherited i didn't have any money saved specifically for the properties nor did i receive money for them as of yet. I definitely do want to learn the ins and outs of real estate so i can establish a nice cash flow in the future.
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