Successful BRRRR Albuquerque?

Question

Who has done a successful 2+ unit BRRR in ABQ?

Please bestow some knowledge/experience, I would love to hear your insight.

What lender did you use for the Refi?

What type of rehab did you do?

What were some of your biggest challenges?

Guy Gemmer · Answer

@Domenick Booker-Pomata

Hey Domenick! My wife and I did a really fun BRRRRRRRR here in Albuquerque. It may not be the typical style of BRRR but it falls into the category. I think.

﻿So, the story goes like this... We bought it as a SFH, knowing the zoning allowed for additional units. We had a wild idea and built an additional unit from the ground up. Now, we did also remodel the main house as part of it so it falls into the "rehab" part of the BRRR, but I realize thats not really the way its done. We subsequently refinanced the property and have since rented them on AirBnB and VRBO. So maybe we should call mine a BRRAirBnB? :) Ha Ha Ha

The biggest difficulty we had was that though the property had been re-zoned, the neighbors in Nob Hill hate change. HATE. Very slow downward decline, they can handle. That's change they can deal with. Quick, upward, investment and development? HATE. I'm not bitter, I am not bitter. I'm really not bitter. Ha Ha Ha!

﻿I used the Waterstone Mortgage - Chris Russo for my refinance and they brokered a great deal.

﻿The actual rehab part of the main house was the typical cosmetics. Paint, flooring, kitchen, bathroom.

﻿Would love to help answer any other questions you have! Let know! ﻿﻿

Domenick Booker-Pomata · Answer

That is definitely a win! Is this your only property in ABQ?

Are you currently working on anymore projects?

Guy Gemmer · Answer

@Domenick Booker-Pomata

No, luckily we didn't have to tear anything down. They just barricaded the permits from being issued from the city by sending letters and complaining.

I came across the deal by thinking outside the box. I over paid for the property initially, but bought the potential equity that existed in the future build. I did my homework. I knew that property was selling for around $250 per sq ft, in the area and found out that a previous Mayor (Martin Chavez) had signed in a re-zoning initiative to increase population density in the area and put in a rapid transit system (ART). Because of the change in zoning, I was able to build a guest house at $130 per sq ft. - Spend $130 and get $250 - Since then property values have increased further, as have rents, and the property performs magnificently.

Domenick Booker-Pomata · Answer

@Guy Gemmer

Thanks for the information Guy.

A little confused, did they make you tear down the new build?

How did you come across the deal?

I was just in ABQ last weekend looking for potential projects.

Are you located in ABQ?