Opinion on house for possible BRRRR

7 Replies

@Michael Vi 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.

@Michael Vi, in general, I wouldn't advocate for a novice to take on a 220yo house, whether for a flip or as a BRRRR project. I don't see this one as an exception to that. Good luck searching, and keep asking...

That looks like a great project to take on for a rental. It is small and there can only be so many problems. If something needs to be replaced, it won't cost much. It does look like there's a roof leak. Also, you might want to see if you can call the upstairs rooms bedrooms. I think they need to have so many square feet of 7-8' ceilings. 

@Marcus Auerbach Thank you for the response! That makes sense. Do you feel like the ratio of 4 is a good general rule for any market or are there exceptions?

I did actually find this house on MLS, but I don't have an account so I couldn't see any info without tracking it down on Zillow. I do plan on partnering with a local agent to gain access to MLS data.

Thanks again!

@Marcus Auerbach Thank you for the response! That makes sense. Do you feel like the ratio of 4 is a good general rule for any market or are there exceptions?

I did actually find this house on MLS, but I don't have an account so I couldn't see any info without tracking it down on Zillow. I do plan on partnering with a local agent to gain access to MLS data.

Thanks again!

@Brent Coombs Thank you and I agree. I’m very new and was curious what other’s thoughts were on this property I saw. You’re right, I’m too new to even go after my first property yet. :) The numbers I saw on Zillow caught my attention and so I was curious.

Thank you for the response!

@Sam Hopkins Thanks! It does look promising to me at a glance, but I’m super new and was curious what other’s thought. I can’t make any moves yet but I’ve been looking through, studying properties in my area, and asking questions.