BRRRR in Charlotte, NC

[Kelly Langlas]

Hi All -

I'm a rookie looking into BRRRR in the Charlotte area - my budget for purchase price and renovations is currently $300K (subject to change possibly as I explore different financing options). I have a few questions I'm hoping to get advice on:

1. 1 - Anyone familiar with investing in the Charlotte area and have suggestions of which areas to check out for BRRRRs? Or any suggestions on resources to use to better learn the areas to help me narrow down my search?
2. 2 - Any suggestion on estimating rehab costs? I know these can be all over the place depending on the specific property and probably best to have a GC walk the property with me, but wondering if there are any general guides I can use while I do my deal analysis (before involving a GC).

Open to any suggestions and appreciate any help and advice!

[Jaycee Greene]

Quote from @Kelly Langlas:

Hi @Jaycee Greene, thanks for the response!

I am interested in SFR, and correct, I am open to light to medium rehab.

1217 Spruce St is actually one of the properties I have my eye on. However, to my second point, I am a bit stuck in my analysis on how much rehab would actually cost. Again, maybe I need to see the property with a contractor, but trying to see if there's any way to come up with an estimate before that step (given I have never rehabbed something before, I don't have background knowledge on it). 

Thanks!

@Kelly Langlas I would first recommend that you ask around for GCs in the area (perhaps someone will have recommendations in this Forum). Most good GCs that work in the area should be able to give you a high-level estimate of the cost of a light rehab on that property on Spruce.

The rule of thumb that most of my REI clients use to estimate rehab costs is as follows: Light Rehab ~ Up to 10% of the purchase price, Medium - Up to 25%, Heavy - Up to 50%. Over 50% is often considered a gut rehab.

And what I consider to be a Light Rehab is: Paint, flooring, fixtures, basic landscaping

Medium: Kitchen/bath remodels, windows, minor roof or HVAC repair

Heavy: Foundation work, full MEP (mechanical/electrical/plumbing), roof, layout reconfiguration

Hope that helps!