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 followWorking 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…
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…
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.…
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…
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…
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…
Trying to read a refinance step correctly before I go further with any of this, and I think I've been mixing up two different numbers. What I read was a version of the rule where…
I've been building this out slowly on purpose and the pattern is now clear enough to worry about. Each of the three houses left something like $22k to $28k behind after the cash-o…
I manage about forty doors, a decent slice of them owned by people running the buy-rehab-rent-refinance loop, and the rehab specs come in two flavors. One group does the cosmetic…
Four small houses, all rehabbed and leased, and I'm at the point where the refinance step is the whole bottleneck. Two of them are still sitting on bridge money. Combined appraise…