First BRRRR: Seeking Advice
Hi everyone, I would really appreciate some input/advice on my first BRRRR investment property. I have been advised that the BRRRR method makes the most sense with the specific property I am looking into. I would really appreciate any general advice, main things to look out for, or anything you wish you knew when you purchased your first BRRRR property. Thanks!
A few details for reference on the property I am looking into:
- It is a duplex with 1300sqft total and a listing price of $180k ($90k/unit). Each unit has a detached garage. Window AC cooled. Built in 1945
- It is three blocks from the local downtown area, on a dead end, and right next to a beautiful walking trail
- The current owner lives in one side and rents the other for $1000/month. It would also be my main residency if I were to purchase the property.
- Post rehab it is fair to say the property would be appraised in the range of $210-$230k
Most Popular Reply
Since you're planning to live in one unit, this is more of a house hack/BRRR hybrid.
I would watch out for:
- Get a realistic rehab budget before you buy. It's easy to underestimate costs on an older property. Have an understanding of what's needed before you close.
- Have a sewer scope completed. Properties from the 1940s can have old clay tile or cast iron lines.
- Inspect the big ticket items: roof, foundation, plumbing, electrical, HVAC, and windows. Mechanicals can add up quick.
- Run the numbers with you occupying a unit and when you move out.
Since you're living there, I'd also take advantage of owner-occupant financing(not sure if you are).
Overall, it sounds like a solid house hack. You have equity mixed with a tenant on the other side helping with rent. I would also scope the area, make sure the block is good. City properties can very quite a bit