Updated about 9 years ago on . Most recent reply
What kind of rehab would you do while using the BRRRR strategy?
Hello everyone, I have a question to all investors who use the BRRRR strategy and the kind of rehab you would do.
1- would you go all out full gut renovation on your rehab?
OR
2- would you do a patch up and repair just enough to get it done fast?
As a contractor I always prefer a full gut but it does eat away the rehab cost and takes longer but no stress about plumbing, leaks, electric, lead paint and etc in the future.
The patch up would cost less, fast timing, but then you are gambling with what's behind the wall and hoping nothing happens in the future.
I assume most house that are purchase for BRRRR purpose are in distress/bad condition and old on some occasion.
What rehab number would you go for?
Most Popular Reply
Only as much as it needs to be acceptable as rent-ready. Meaning, the original "deal" needs to good enough for its new appraisal after a minimum rehab to allow you ALL your cash back on refi!
After all, the strategy has you buying properties to ONLY be rentals. All the best with it. Cheers...