Suggestions for BRRRR

[Stephen Kunen]

Hi all, we have closed on a 4 unit in January this year in Allentown PA. So far we have done some cosmetic repairs, and are hoping to renovate the unit in the worst shape once the tenants move out this month or next month. We plan to cash out refinance it sometime this year. Because we bought the property off market so it was slightly under market price, and after the repairs we should be able to increase the rents. Wondering if anybody has suggestions on how to force appreciation in any other ways for us to do a full BRRRR. More specifically, calling out Lehigh Valley (Easton, Bethlehem and Allentown) investors for recommendations for lenders that are good with choices for cash out refinance with little / no seasoning period requirements.

[Jason D.]

@Stephen Kunen because it's a 4 unit, chances are it'll be appraised as residential, which means raising rent will not automatically raise its value. You'll need to concentrate on adding value through improvements. Finding comps will give you an idea of what its value is, and what it can be when renovated.