1st attempt at BRRRR - help with max bid at auction.

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1st attempt at BRRRR - help with max bid at auction.

David C.
Chicago, IL · Member since 2019 · 39 posts · 9 votes

Hi everyone, 

I'm excited! 

Here's my numbers analyzing a possible BRRRR. I've inflated the repair costs for worst-case scenario, and conservative on vacancy etc.

I've set $80,000 as my bidding limit for a house that comps suggest i can get 150k reappraisal on (refinance after 6 months).

Is that too safe? Should I be braver?
How high should I go with the bidding in that exciting last hour?

Thanks for any watch outs / advice.

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  • John L.
    Houston Texas · Member since 2019 · 20 posts · 8 votes
    6y

    Whenever I've bid on something, I always put the MAX I'd be comfortable bidding.  Then I know if someone outbids me I won't have second thoughts like "Man, I would have done that!".   If someone bids $81k and gets it will you think "I would have done $82k!".  If that's the case, do that now.  Just because you put in your highest doesn't mean you have to pay that.  You'll still get it for just over what 2nd place taps out at 

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  • David C.
    OP
    Chicago, IL · Member since 2019 · 39 posts · 9 votes
    6y
    Originally posted by @John L.:

    Whenever I've bid on something, I always put the MAX I'd be comfortable bidding.  Then I know if someone outbids me I won't have second thoughts like "Man, I would have done that!".   If someone bids $81k and gets it will you think "I would have done $82k!".  If that's the case, do that now.  Just because you put in your highest doesn't mean you have to pay that.  You'll still get it for just over what 2nd place taps out at 

    Thanks John - good advice. Things will heat up tomorrow so I have some thinking to do tonight. Do you find that in these online auctions there maybe the seller bumping it up to work out the max and push it as far as possible? I don't want to set that max (e.g 80k) now while I'm the highest bidder with a day to go with 52k. For that reason, Is it best to set my max in my head and bid that number 5 mins before end? (maybe my only experience with auctions on eBay 10 year ago is doing me a disservice here ;) 

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