Updated about 5 years ago on . Most recent reply
Should I use conventional financing or use BRRRR on this deal?
I have a potential deal on the table but I'm not sure whether to use conventional financing or to try to execute a BRRRR strategy. The condo costs 150k and its a bank repo/foreclosure. All of the comparable homes in the neighborhood are at around 185k to 200k but none have updates. I'm estimating that we could do all the updates that we need to make for around 15k. That puts us all in for about 165k with the hope that we could refi at 200k. I could come up with the traditional 20% down and finance the repairs myself or I can use hard money to finance the whole project and then recoup most of my money back during the refi process. What would you do?