Realtor · Decatur, GA · Member since 2017 · 135 posts · 92 votes
I've done a few flips, but will be running my next project as a BRRRR. I'd like to sell in year 5 or so.
I'm curious for those that have done BRRRR's - what did you differently than if you were flipping in terms of finishes and rehab decisions? My worry is having to go back in and repeat a lot of the work before selling.
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
7y
@Sara C. odds of finding the same tenant for five years are probably not good. I would really give thought to the flooring. Vinyl plank or tile. If you wish to provide plain area rugs that would be okay - they can be easily replaced. But I wouldn't do carpet... You want to just scrub and go for the next renter.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
7y
@Sara C. My BRRRRs are slightly lower grade than if I were to flip, but not much. I still do all wood cabinets, granite counters, quality fixtures, etc... but I'll do one level below what i would do in a flip. So, level 1 vs. level 2 granite, low grade stainless appliances vs. mid level. If you're selling in 5 years you'll likely have to replace most of the cosmetics anyway, just due to tenant wear, so I would keep that in mind.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
7y
BRRRR properties are rentals so generally speaking is that you wouldn't need to make it quite as flashy. Flips need to appeal to buyers, BRRR deals just need to appeal to renters. Don't use cheap and poor quality materials like flat paint or builders grade carpet. But you don't need Brazilian hardwood floors or granite slab countertops either.
When you Brrrr a rental think entry level home buyer finish. Laminate counters, laminate floors, inexpensive tile, tub/shower surround etc. Nothing fancy or expensive....it's a rental..
Realtor · Decatur, GA · Member since 2017 · 135 posts · 92 votes
7y
Ok, thanks all! This is giving me some good perspective. I'm not planning (as of now) to hold it a super long time, so that's why I'm having some trouble knowing how to finish it out. I want it to be durable for renters, but also be desirable to buyers when the time comes (and add some nice value). I don't mind going back in right before the sale, but I'd like to the bulk of the work now.
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
7y
@Sara C. odds of finding the same tenant for five years are probably not good. I would really give thought to the flooring. Vinyl plank or tile. If you wish to provide plain area rugs that would be okay - they can be easily replaced. But I wouldn't do carpet... You want to just scrub and go for the next renter.
That is my exact strategy. BRRRR, hold for 5 years, 1031 exchange to larger properties. The level of quality also depends on if it is a SFR or Multi Family. The single home can be purchased buy Home owners or investors. The Multi's will be purchased by investors. Each have different expectations. I never put carpet in any of my rentals. I primarily use laminate/vinyl planks for most rooms. Some ceramic tiles in certain neighborhoods. Hardwood flooring only when it was originally there.
My Rehabs include any major component that will not last past 5 years along with the usual cosmetics stuff. So far I have replaced every roof. I fully expect to due a cosmetic refresh before selling.