Potential first BRRRR

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Potential first BRRRR

Timothy Cummins
Rental Property Investor · Cumming, GA · Member since 2016 · 9 posts · 2 votes

I have a property that's could potentially be my first BRRRR property. I just got married a year ago, we just bought our house 6 months ago, my wife isn't on board (yet haha) and we aren't exactly rollin' in the dough. But I found a potentially great deal. The man who used to live in the house is now in a nursing home and the daughters were cleaning the house out when I met them. They want to sell quick and easy, aren't using a realtor and have no idea what they would sell it for. I have built great rapport and as far as I know I'm the only one she's told they want to sell. I have a pretty good idea of what ARV is going to be and will soon have a better idea of rehab cost and can go from there. If I'm able to get it cheap enough maybe I won't have trouble finding private money but I'm still looking into funding options. I really think this could be a great deal, cashflowing BRRRR in an amazing area, but at the same time I don't want to start us off on a bad note and risk too much this early in our marriage/careers.

Any thoughts, suggestions, tips and advice are welcome!

Any thoughts on partnering on a BRRRR. A friend mentioned that but I'm not sure about it.

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  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    6y

    Hey @Timothy Cummins!

    Sounds like a very sticky situation to me. I'm tempted to say go for it if you know it's a fantastic deal because it will show your wife the power of REI. Now I would only do this if I had ran the numbers very conservatively and was confident in the returns. At the same time, I believe that family should always come first. So if you think that this deal turning sour may damage y'all's relationship, I would say it probably isn't worth the risk.

    Have you tried bringing the deal to her on paper, like you would bring it to a lender, and show her what to expect? 

    Partnering on a BRRRR is a great idea if you do not have the capital to do it on your own. You can also go the hard money route. I plan on doing one of those for my first BRRRR.

    If you have any other questions please feel free to shoot me a message anytime.

    [email protected]404-737-0018
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  • Timothy Cummins
    OP
    Rental Property Investor · Cumming, GA · Member since 2016 · 9 posts · 2 votes
    6y

    @Brenden Mitchum,

    Thank you for your response and advice/thoughts! Yes, I agree family does come first and it's not worth risking doing damage, especially this early in our marriage, if it's not for sure a great deal. I am planning on using private money and am working on estimating rehab cost and ARV to see what number I can offer on the house. With that said I'm using the BRRRR calculator on BP to create a nice clean and clear picture of the potential for this investment property, which I will present to her and my potential private money lender.

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    6y

    @Timothy Cummins thanks for posting here.  I feel that you need to have some specific questions answered before knowing if a deal is worth doing or not.  Here's what I would suggest learning about:

    • How to calculate ARV
    • Calculate Rehab Costs
    • Calcualte how long your Rehab will take
    • Calculate Holding Costs
    • Terms on “BUY” and “REFINANCE” Lenders

    You can certainly skip any of these....but you would be risking quite a bit if you don't have them answered. I would recommend to network with some fellow investors on how to know the answers to the above items.

    1. Post in the Bigger Pockets STATE forum that you are looking in. There are usually some good, local investors that monitor those forums. Maybe they already have a suggestion or recommendation for you? Certainly try there.
    2. Visit your local REI groups. There are many groups that meet across the country. Some post here on Bigger Pockets. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.

    Hope this helps!

    1Reply
  • Timothy Cummins
    OP
    Rental Property Investor · Cumming, GA · Member since 2016 · 9 posts · 2 votes
    6y

    @Andrew Postell, thanks for the advice! I really appreciate it!

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