Indianapolis brrrr red flags

5 Replies

I have question about BRRRR. I'm going to do my first brrrr deal. I understand that you can technically make any repair item work with BRRR as long as you are all in at 75% of ARV (assuming you're getting a really good purchase price discount). But assuming you're getting an average discount on a distressed property what type of big item repairs (foundation, plumbing, electrical, etc) would be a red flag and a deal breaker for a brrrr deal in Indianapolis?

Originally posted by @Justin Polston :

@Jason Ma of your small list there, depending on the extent and subjectivity of the damage, I would say anything even potentially structural such as dry rot and termite damage (especially around here).

 so avoid any kind of foundation issues (like caused by dry rot and termite damage)?

Originally posted by @Nick Giulioni :

Any house can be a deal depending on the discount. Foundations tend to be spendy though.

 Thats the vibe that I'm getting by talking to investors is that foundation issues are a deal breaker.

Originally posted by @Jason Ma :
Originally posted by @Nick Giulioni:

Any house can be a deal depending on the discount. Foundations tend to be spendy though.

 Thats the vibe that I'm getting by talking to investors is that foundation issues are a deal breaker.

Potentially a big deal breaker.  I'd get a quote to repair before writing off. Other investors might be scared away of something that might "only" be $15k.

 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here