BRRRR rehab strategy

[Bryan Zayac]

Hey guys -- I'm actively seeking a BRRRR opportunity in Northeastern PA (NEPA). A common theme among the homes that would qualify as a BRRRR opportunity are that the properties would be very aged and typically need and entire gut job to be done correctly. Knob and tube wiring, old plumbing, beat up plaster walls. My question is - when evaluating a BRRRR deal with similar circumstances, do you guys plan a full on gut, or more cosmetic, accepting a lower rent? I understand that there are many answers and it will depend on if the property can cash flow with a full gut rehab and be able to refi. But I guess for me I'm having a hard time knowing that in such an old house you're just hiding the old issues by dressing it up. I would prefer to completely gut and redo the property the "right" way. Thoughts?? Experiences?

[Nicholas Lohr]

A BRRRR deal kind of implies a long term hold so id recommend doing what you said, "completely gut and redo the property the "right" way."

Youll have less CapEx, Repairs, and headaches this way.

Just make sure you get the rehab numbers right before you go for it and make sure they work out with the BRRRR calculations.