FIRST REHAB PROJECT!! Looking for a bit of Guidance with BRRR!

[Kyle Sanders]

Hi Everyone!! 

I apologize for the long post, but might as well share the details:) This is a very exciting time for us as this is our FIRST REHAB PROJECT! 

We are not completely new to the game, as in my business partner and I own 2 turn-key multi-family duplex properties that have required minimal repairs.

However with this new venture, we are trying to scope out our first deal to BRRR and see how things turn out. To give you a quick outline, the property is a Foreclosure that is listed for $54,900. In this area, that is high for an 1,147 Sqft, 2 bed, 2 bath that will need a PREMIUM facelift, as in the structure is still good but most everything will be replaced but the studs due to everything being outdated. That all being said, we are starting our offers low around $30k and looking for the bank that owns it to come down quite a bit and settle somewhere advantageous to both parties. Hoping that we can refinance and/or sell the house for ~$110-130k. (House next door is listed for $124k with 1,165 Sqft, 3 bed, 2 bath)

What we are looking for is a bit of detail on how to underwrite contracting fees and materials fees and if anybody had any quick formulas to run through this? 

Lastly, if anybody has a good idea on how to predict reappraisal and refinance expectations, please let me know about your experiences!

If you made it this far, we appreciate your time & interest and PLEASE leave a comment to help us out! (even if its just some motivation:])

We look forward to hearing from BP Forums and everybody involved in this community!! Let's get after it!!