New to the BRRRR
Investor · Member since 2025 · 8 posts · 6 votes
New to the BRRRR
Most Popular Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votesyou're on the right track, but the numbers can't be 'ideal,' they have to be rock solid. so, is the ARV really 160K? you need solid comps. and, 30K seems low for what you're proposing, but it's of course hard to tell since i haven't seen the house and don't know anything but the information you posted. to estimate the rehab you have to... estimate the rehab. add everything up down to lightswitch plates and cabinet hardware.
also remember to factor in purchase closing costs, holding costs, and refinance closing costs. these can add up to thousands or even tens of thousands of dollars and often get overlooked. refinancing can actually be pretty expensive.
check out Tarl Yarber's BRRRR walkthroughs on YouTube. He does a great job of going into the weeds on all of this stuff.
hope this helps
8 Replies
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
you're on the right track, but the numbers can't be 'ideal,' they have to be rock solid. so, is the ARV really 160K? you need solid comps. and, 30K seems low for what you're proposing, but it's of course hard to tell since i haven't seen the house and don't know anything but the information you posted. to estimate the rehab you have to... estimate the rehab. add everything up down to lightswitch plates and cabinet hardware.
also remember to factor in purchase closing costs, holding costs, and refinance closing costs. these can add up to thousands or even tens of thousands of dollars and often get overlooked. refinancing can actually be pretty expensive.
check out Tarl Yarber's BRRRR walkthroughs on YouTube. He does a great job of going into the weeds on all of this stuff.
hope this helps
- Investor · Member since 2025 · 8 posts · 6 votes1y
Yes thanks for the suggestions. I will check out those videos. Thanks a lot.
- 1yGeorge SkidisPro MemberRental Property Investor · Belleville, IL · Member since 2017 · 874 posts · 529 votes
Harrison:
You are not asking the right questions, and your description is not very informative.
Rehab is dependent on the type of original construction. Your description could be a ranch style "National Home". These were manufactured with by sections in their factory and assembled on location. Most wall panels were 4 feet long so the length and width are most often divisible by 4, These were very popular in the 50s and 60s and most are on a slab foundation. If that is true, the second bathroom may not be affordable or practical.
Your project could also be something with a full basement built in the 40s. If so that would make it easier to add a ground floor bathroom. But then you need to consider how old are the drain lines in the house and in the ground. Does it still have a septic system or has the city installed sewers. Next are concerns about foundation issues.
The older the house the older the plumbing. Is it copper or galvanized? Re-pluming is expensive!
What you need to do is perform your own thorough and complete due diligence. Watch some rehab videos but stay away from "Flip this House" which is a reality TV Show filmed to create viewers and lean more to "This Old House".
The next thing is location. What is the max you have seen a home sell for in a 1-mile radius? Can you buy this home and rehab it to sell for less than the maximum price and still make a profit.
Get three estimates for the work. Add 10 to 20 percent to the mid-range estimate to allow for the for unknown factors discovered after you start because you may not have the background to perform due diligence.
Go join the local Real Estate Investors Association (REIA) in your area. In Chicago go see Jane Garvey at the Chicago Creative Investors Association. IN Springfield check out the Springfield Area Landlords Association (SALA). In Southern Illinois check our Illinois REIA. We are all members of National REIA.
- 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Quote from @Harrison Taylor:
Hello,
New to the community and also a new investor. I've landed with wanting to try a BRRRR strategy on a house in my local market. I live in the Midwest, Illinois to be exact.
The house would be bought and rehabbed with cash. The house is in good shape at face value but is old. It is a 1300sq/ft 3 bed 1 bath with plenty of room to add a second bathroom.
I guess my question here is how to estimate a decent rehab budget. My plans are to add a second bathroom (sellers have already started this project). Maybe update HVAC system, the house doesn't have central air. Update the kitchen and windows. I'm hoping to keep it around 30K. Is this attainable? Is it wishful thinking?
Ideal purchase price: 65K
Ideal rehab cost: 30K
Ideal ARV: 160K
Thanks in advance for any advice/ input.
-Harrison
Always run numbers higher than what they are!
Kerlous Tadres | Reafco Real Estate539 Reviews - 1yOrlando JohnsonPro MemberNew Lenox, IL · Member since 2015 · 30 posts · 5 votes
Harrison,
As the other investor said earlier that 30K budget is a little light. I also live in Illinois and I have a way of estimating my rehab and my way of doing it is not for everyone but, it works for me. I put standard numbers in the fix and flip calculator here on the biggerpockets website. I recently had a HVAC unit installed running duct work and that alone was about $18,000. Then, I estimate windows at about $400 per window installed, you will have to estimate for electrical and plumbing. Do you need to replace the roof ? These are just somethings you may want to think about when estimating what it will cost to perform your rehab. Their are a lot more things to consider when coming up with your numbers. Also George spoke about Jane Garvey she is a good person to connect with but, I think she only does online events now. I maybe wrong but before covid I use to attend her meeting in Downers Grove also, I attend a REIA group in Shorewood if interested please reach out and I will introduce you to the group that I attend.
- Investor · Member since 2025 · 8 posts · 6 votes1y
Thanks for the thoughts and comments. I'm actually located in southern Illinois but I would definitely be interested in any groups in my area.
- 1yOrlando JohnsonPro MemberNew Lenox, IL · Member since 2015 · 30 posts · 5 votes
The group that I am talking about is located in Shorewood Illinois. If interested in attending please reach out to me thru this platform then I will get you the information.
- Member since 2023 · 158 posts · 96 votes1y
You're off to a solid start, and your ARV target looks good on paper — but $30K for all of that might be a little tight depending on your market and how much of the work you're doing yourself.
Adding a bathroom alone can run $8K–$15K, especially if plumbing needs to be added or relocated. HVAC upgrades and central air could easily add another $7K–$10K. Kitchen and windows, even on a budget, can still run $10K–$15K combined depending on materials and scope.
That said, if the layout is already roughed in for the second bath and the bones of the house are solid, it’s not impossible — but you’ll need a tight scope, a good GC (or solid DIY skills), and a buffer for surprises. I’d probably ballpark $35K–$40K for safety unless you’ve already priced out materials and labor.
The deal looks promising overall — just pad your numbers a bit to protect that margin. Keep us posted on how it goes.
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