Help pls with first brrrr

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Help pls with first brrrr

Yakir AloniPro Member
Member since 2023 · 51 posts · 19 votes

Hey guys i need you help here and i need some of your experience pls...



I'm on contract of my first brrrr with hard money loan

And i want to know thatcif i change the roof now and fixing the crowl space

That will cost me to do both of the things around 20k

I running the numbers and i can get the arv that i need buy my question when the aprizel coming after we finish to renovation the house with this to major fixing issues that he coulcaite with this 2 major fixing to his numbers for the arv or not ? Want to mention that that house now 2bed 1 bath and i qant to make it 3 bed and 2 bath



Ty for your help

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  • Greg Kasmer
    Rental Property Investor · Philadelphia, PA · Member since 2021 · 774 posts · 501 votes
    2y

    Yakir - In my experience the appraiser will discount the house if their are obvious areas that need to be fixed/repaired. However, I'm not sure whether the discount will be => than the $20k you mention to fix the roof and repair the crawl space. To me, when a roof is starting the leak it should be repaired/replaced, so I rarely wait to fix a roof. Not sure what needs to be done to the crawl space, but that seems less important to me...

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  • Yakir AloniPro Member
    OP
    Member since 2023 · 51 posts · 19 votes
    2y

    Greg ty 

    so when I will finish my renovation including the new roof I will put there so the appraiser will count the new roof with his apprize price correct?!!

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  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
    2y

    @Yakir Aloni

    You should replace those items. 

    Things that drive the ARV higher - roof, plumbing, electrical, paint

    Things that don't drive the ARV as much - windows, landscaping, driveway

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