BRRRR in Spain!Does it work in this country,in current market?
I want to get started in BRRRR,I live in Almeria,Spain,but I have no idea if it could work in my area,laws are different than in the US.
The biggest problem that I see with BRRRR in my area is the purchase price.Let me explain:
We are talking about fixer uppers.If you want to get a good deal,one that is efficient for BRRRR,the price has to be very low,over here,low price means bad neighborhood.If you want to get, lets say, a single family apartment in a good neighborhood,that means higher price,so you will be overspending.
Plus,laws here are very loose when it comes to tenant/landlord relationships,should the tenant decide not to pay,you cannot just kick them out,there is a legal proceeding which takes +-2 years,plus they can literally thrash your place.This can happen even if you do a very thurrel screening.
Also,banks dont really refinance at very good rates,even considering the ARV.I've tried to mortgage my apartment,to see what equity I could get out of it(I dont currently have a mortgage on my apartment),and they offer pennies.
What I'm trying to say is basically that it seems to me there is very little margin for profit using BRRRR in my area.
If anyone has any ideas,or any insights on this topic,preferrably with examples,I would be ever so gratefull if they could share them.
Thank you