Can I BRRR in this scenario?
I am very new to all this, but quickly sponging up all the information I can about real estate investing, especially BRRR.
Our current scenario is already positive. Buying my childhood home at less than half of the appraised value from my mom who is extremely trustworthy in money matters and all parties (seller, purchaser, renters, my attorney) are happy with the current arrangement. She has slowly gifted us the remaining value to avoid gift tax in case any alarms were going off for anyone! I'm paying half of the amount I bring in monthly from our excellent renters in a 0% interest "mortgage." The house is quite livable, but needs work like an eventual new roof, changing the kitchen floor from carpet to tile (Yes, carpet. The bathroom even had carpet, but my husband and I ripped it out as well as the water-damaged flooring, replaced it and put in gorgeous, frugally purchased tile). There are numerous ways I can increase the ARV, like splitting up the massive upstairs bathroom into two, and I'm nervous about when the roof might give out on us... I even have an LLC that is sitting, doing nothing, but I am current on dues and filing reports.
I feel like I should be BRRRing in this scenario. I would love to quicken the rehab process in a financially savvy way and get my mom paid off ASAP for her sake. I’m wondering if it’s even possible since I already have tenants. They are completely fine with the house “as is,” but would also love to see the improvements I would make. I am certain that they would even agree to a new lease and slight rent increase after improvements.
I feel like that would be an excellent route to take, and maybe people reading this think I’m crazy for even having to ask, but I’m missing gaps of info that would affirm my hopes. Any video links and recommendations would be appreciated. If anyone has done something of this sort before, would love to hear about it. Thanks so much and happy investing!
~Audra