How big of a rehab would you take on for your first BRRRR?

2 Replies

We are currently under contract on what will be our first BRRRR deal. We own a 4-unit already that is slowly being rehabbed. We had the inspection today and had a contractor come out and there are foundational issues that we were not aware of, so the total cost of the project will now be between $25,000-$30,000 rather than the $10,000 we were anticipating. The rest of the rehab is mostly cosmetic. We are going to try to renegotiate price. We have also had our eyes on a few more deals that seems to will require much more renovation than this one, but my question is how big of a rehab would you take on if you're just starting out with the BRRRR strategy? We are investing out of state.

I think it boils down to...

1) Numbers- does the deal make sense? 

2) Comfort level- Do you trust the GC or foundation company to do it right?

I think you need to look at these 2 things. Also shouldn't a foundation issue be caught when you initially viewed it?