This entry treats the BRRRR method, buy, rehab, rent, refinance, repeat, from the passive portfolio-builder's perspective: an investor using the strategy primarily to accumulate long-term rental holdings and recycle capital, rather than as an active rehab operation.
Log in to followFour properties, all done the same way, all bought distressed and rehabbed and rented. The first two refinanced in the low-rate stretch and behaved exactly the way the strategy is…
Small three bed in a working class pocket, bought at 132k, put 38k in, planned rent 1,650. The refinance math worked on paper and I got most of the cash back, so on the spreadshee…
This was my first BRRRR and I bought it partly because I like reading loan documents, which turns out to be a different skill from reading them for the right thing. Small three be…
Working through a term sheet a private lender sent me for a bridge-to-DSCR setup and I want to check my arithmetic against how people who actually hold these things think about it…
What I keep going in circles on, after six months of research and no deals, is which end of BRRRR to shop from. One way to look at it: the discount is where the money is made. You…
Here's the deal I'm looking at right now. Purchase $118k, rehab budget $42k and I'll finish close to it, closing and holding another $8k, so all in around $168k. Appraiser's ARV o…
Small two bed one bath cottage in a working class part of town, the kind with a detached one car garage that leans. I paid 96k, budgeted 26k, and thought it was worth 165k fixed.…
Two scopes for the same 1950s three-bed came across my desk this week, both written by the same investor, and I've been staring at them for days. Scope A is 38k. Kitchen, bath, fl…
I ran this two ways this month and I can't decide which column I believe. Column one. Distressed three-bed, 110k purchase, 40k rehab, all in around 158k with carry and closing. Re…
I got a number back from a construction manager on a small two-unit I'm circling. Fourteen percent of hard cost to run scope, bids, draws, and inspections, with me signing checks…
I do the work myself, mostly, which is why the numbers on these looked good to me in the first place. Framing, tile, trim, drywall if I have to. I sub out the panel and the HVAC.…
I care more about documents than properties, and on my first BRRRR that turned out to be the useful trait. Small two bed house, bought at 96k, rehab budget 34k. Before I signed an…
Underwriting a small multifamily BRRRR for someone and I've been arguing with myself about one cell for two days. The refinance is nine to twelve months out. Today's quoted DSCR r…
Working through a decision that seems to split people every time it comes up, and I want to see where this room actually lands. Setup, roughly. Rehab is done, tenant is in, and yo…
The term sheet on a rehab-to-rent loan I'm looking at has a line saying builder's risk binder required prior to first draw, naming the lender as mortgagee. I thought a landlord po…
Trying to get my head around the R that everyone talks about. Every write up I read describes buying at 70% of value minus rehab, then refinancing and getting all your cash back s…
I'm looking at this from the lending side rather than as an owner, and the cost-basis question keeps coming up. On a delayed financing setup, the file is supposed to document the…
Posting the numbers because the thing that made this work was a modeling choice, not a market call. 1920s triplex, two ones over a two one, in a streetcar suburb of a mid sized mi…
Numbers first. Duplex, 1950s, bought at 142k with a private loan at 155k total draw (purchase plus first rehab tranche). Rehab came in at 48k against a 43k budget, mostly because…
There's a house two streets over from my first rental listed at $130k that needs new roof, kitchen, and floors. My agent thinks $30k of work and says it would appraise around $200…