Currently rehabbing my first B+H Rental
I am currently rehabbing my first b+h rental here in Indianapolis. I am pretty fortunate enough that the house was paid off long ago and I received ownership through a quit-claim deed.
Keep in mind I needed to pay a family member $10K just to sign the quit-claim papers, that's the nature of the beast I suppose. So going forward all repair numbers will include that $10K.
Currently the house is appraised at 75,300 by 3 separate appraisers within 2 months of each other. The real value if i wanted to sell cash today is most likely in the 45-50 ballpark. As for repairs and updates, all-in I am in the $35-$37k range which includes a $5k buffer for anything unforseen. My projected ARV is around $100-110K giving me roughly $52k in equity to utilize after repairs and refinancing. ($52k = $100-35*.80).
My strategy is to use the BRRR method at least for my first 5-10 rentals. In your opinion would I be better off using that money toward purchasing another rental + rennovate or would you break it up into 5 separate down payments over time and finance each separately.
I should also mention that the current home has a state tax credit of 25% towards all repairs + updates made to the home.
I know this is quite open ended but feel free to grill me with questions!
Thank you!