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Michael Via
  • Rental Property Investor
  • Indianapolis, IN
10
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40
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Opinion on house for possible BRRRR

Michael Via
  • Rental Property Investor
  • Indianapolis, IN
Posted

Hi, and thanks for reading! I'm new to REI and have been looking through lots of listings to get a feel for what's out there, etc. I saw this house in my local area and I'm curious on what others think about it's potential based on what you see in the Zillow listing.

https://www.zillow.com/homedetails/541-Forest-Ave-...

Thanks! :)

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5,411
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Marcus Auerbach
  • Investor
  • Milwaukee - Mequon, WI
7,802
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Marcus Auerbach
  • Investor
  • Milwaukee - Mequon, WI
Replied

@Michael Via probelm with Zillow is that a lot of the for sale data is not current, from a couple days to a couple months. Find a local agent (on BP, preferably one who has done BRRR's personally) and get set up with MLS.

At quick glace I suspect that your ratio of Rehab Budget to ARV will not work. In my experience a ratio of 4 is needed, or in other words your rehab should not exceed 25% of the ARV. In my market this house would take about $40k-50k to rehab.

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