First Post! Co-Living BRRRR Strategy – Need Advice on Deal Analysis & Strategy

[Fatima Rosa]

Hi BP Family,

After years of learning from this incredible community, I’m finally jumping in with my first post!

I recently ran a BRRRR analysis through the BP calculator, but I'm looking for a confidence check and possibly some guidance, partnership ideas, and/or feedback.

Here’s the scenario:

• Property: 3 bed / 1.5 bath single-family (~900 sq ft) w/ one-car garage

• Ownership: Currently owned by my mother; occupied by my sibling

• Liens:

  • $17.8K (1st mortgage)

  • $19.5K (2nd mortgage—down payment assistance)

  • No additional liens

• Acquisition Plan:

  • In Lieu of a Quit Claim, purchase the property from my mother to establish a clear arms-length transaction (will trigger repayment of 2nd mortgage)

  • Provide $20K to sibling as relocation assistance

  • Using an attorney to minimize closing costs

  • Total acquisition cost = $57.3K + Closing cost

Rehab Plan & Budget:

• Projected rehab cost: $90K (based on prior inspection and current condition)

• Required repairs include:

  • Full gut renovation

  • New roof

  • Electrical and plumbing replacement

  • Converting ½ bath to full

  • Garage conversion to bedroom + ensuite bath

• Final layout = 4 bed / 3 bath

• Estimated ARV: $250K (based on comps in the area)

Exit Strategy:

• Rental model: Co-living

  • Historically rented (in current poor condition) to 2 tenants at $450/mo each

  • Post-rehab target: $800/mo per room minimum

• Intend to refinance and pull equity post-stabilization

Seek guidance from the community on the following:

Does this deal make sense from a BRRRR standpoint?

Thoughts on creative financing options to minimize out-of-pocket cash (hard money, partnership, etc.)

Tips for maximizing appraised value on a co-living conversion

Pitfalls to avoid with this type of strategy to force appreciation

I’m serious about taking action and value this community’s insight from analysis checks to potential partnership conversations.

Many thanks for considering my request.

Fatima 

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