Owner finance BRRRR deal ?

Question

Hello I’m Latrice. A newbie to real estate. I’m interested in doing my first BRRRR deal in the next few months on a duplex. Is owner financing a good idea ? I only have about 35k. Not enough to buy and rehab.

Thanks for your comments and suggestions

Collin Corrington · Answer

I think $35K is more than enough to get going!  My first deal I did with $17K and more than doubled my money!

You've got to be on the lookout.  If you're trying to owner finance a $300K house that wants 20% down with $35K then no, you don't have enough.

I don't know all the details of your circumstances but remember the refinance part of a BRRRR deal.  As long as you can force more than 20-25% equity you should be fine.  And don't forget, some Hard Money guys will finance the rehab if the project is good enough.

Latrice Epps · Answer

@Collin Corrinton

Thank you for the advice.

Will do

Collin Corrington · Answer

It depends on the demand.  Remember, vacancy rates can kill you.  Talk to a local Realtor about demand in the area.

But, yes, I would BRRRR a condo. Shared maintenance is an amazing thing.  You only have a portion of the roof, plumbing, etc.

Latrice Epps · Answer

@Collin Corrinton

Thank Collin. I think I was look at the wrong properties. I have found some in the 32-49k range. Would you BRRRR a condo?

Latrice Epps · Answer

@Nicholas Lohr

Thanks for your response. No I know I still have to put money down. I just wasn’t sure if I would have enough to complete the repairs thus not increasing my ARV so I could refinance. I guess I’m afraid I don’t have enough to get started.

Nicholas Lohr · Answer

Owner finance can be a great idea. I did it on an apartment building and it worked out great. However you only having 35k is kind of a different subject. I'm guessing here but perhaps you're thinking that an owner finance deal doesn't require a down payment?  They usually do just as a bank does.

Owner finance BRRRR deal ?

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