BP Podcast 356 - Section 8, Joe Asamoah, questions about rehab
I recently listened to BP podcast 356 with Joe Asamoah who does high end Section 8 rentals in Washington DC. One of his strategies is to buy a 3 bedroom house with a basement and finish the basement making it into a 5 bedroom house. Does anyone else use a similar strategy? He mentioned getting $5,400+ for his rentals which is way above the DC FMRs. How is he able to do that?
I made an offer on a 6/2 two-family (each 3/1) that has an unfinished attic with at least 7-8 foot ceiling. Both units total 2,100 sq ft and the attic is another 900-1,000 sq ft. The property already needs extensive renovation so would it be worthwhile to finish the attic by adding 2 more bedrooms and a bathroom (making one unit 5/2), assuming the cost wasn't too high? In this area, 3 bedroom FMR is about $1,390 and 5 bedroom is almost $1,750.
I am looking to BRRRR this.