How to factor in existing tenants when analyzing BRRRR candidates

[Ryan Monty]

Hi all - I'm trying to get started with my first BRRRR project and I'm running into the issue of existing tenants. When I hear most people talk about BRRRR, it seems like they're maybe talking about vacant properties. You can get in a do the rehab without any interference. This allow you to cash out much quicker and reduce your holding costs, especially if you're using hard money.

I'm not going to be a cash buyer (at least not for the first one), so how would you strategize working with a property that is 100% rented at the time or purchase?

[Brenden Mitchum]

@Ryan Monty

You're absolutely right about courts being backed up once the moratorium does lift. If the county has not been doing any eviction hearings but has been taking filings for the past year, anyone who is recently filing eviction will have to wait until the court gets through all of those backlogged cases first. Great point and just another reason to be extra careful with occupied properties right now!

Glad I was able to help a bit. Good luck!