Is 100k a realistic starting amount?

Question

I've been renting out my previous main residence and next year I plant to sell it. I should net about 100k and I'm wondering If this is enough to start a BRRRR type strategy in Denver

Jack Mawer · Answer

It depends on the cost of the property and the extent of the rehab but I think $100k should be plenty for your first project, especially if the lender you go with gives you solid LTV and pays for most if not all of your rehab costs.

Abe Louis · Answer

Cool! Thanks for the link. Yeah I don't mind leaving some cash in the deal as long as I have enough after for the "repeat" step

Brett Deas · Answer

That is certainly a good amount to work with. The BRRR would have to be a great deal but it could definitely work. Definitely find a hard money lender that will cover the rehab costs, and just know that you wont be finding a place for that price in capitol hill or areas like that. Looking out in Lakewood or commerce city could be great places to find some deals.

Tanner Pile · Answer

I would expect to leave a portion of the $100k in the deal as well. The BRRRR strategy in Colorado is difficult to get all of your money out of a deal when you refi. This is a lender I've been speaking with on doing a BRRRR strategy and they do 100% finance on rehab and depending on experience can do 10-15% down payment for the whole project. https://brrrrstrategyfunding.c...  The loan officer Alex is on bigger pockets as well! @alexbekeza

Eliott Elias · Answer

100k can fund a 650k project for you (rehab + purchase)

Matt M. · Answer

I did a BRRR for $15k here in town. It's doable.

Theresa Harris · Answer

Talk to your bank to find out how much you can borrow.  That will give you an idea of how much of that $100K you need as a down payment and how much you have for renos.

You mentioned you've been renting your main residence-part of it or the whole thing and for how long?  You may need to pay taxes on any capital gains depending on your answer.

Is 100k a realistic starting amount?

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