BRRRR or Let it Flow?

[Eric Reed]

Hi BP Friends,

We just closed on our second property (a duplex) that we bought for under $60k! With current renters willing to sign a year-long extension, we have the place rented for $1,025/month. The property needs some love, and we're wondering if we should be doing renovation at the end of the year as a BRRRR update, or just let the cash flow roll in and not touch it until someone moves out?

Current PITI is about $600/month so our cash flow is about $425/month. Do we just let it stack up? Do we BRRRR?

Thanks!

Eric 

[Eric Reed]

Thanks so much for the replies, @Frank Wong @Joy Sandford @Jake S.!  We are very excited about the property (even with some of the updates that need to happen.  I think we'll let it cash flow this year and replace/repair any small items that pop up as we go.  

The area is decent, and comps are in the $120-$140k range.  We'll likely throw money at it once someone moves out and we need to improve it to increase rents yet again.  We should achieve $650/unit or more once rehabbed according to Rentometer and our own research.