BRRRR !!! Should I factor in holding costs next time?

[Redgy Saint-Germain]

I have a duplex under reno right that I intended to use the BRRRR strategy on with 8% vacancy on the original numbers. My numbers are all messed up now because the contractor failed to deliver the units on time with all type of excuses. It`s been 108 days since closing, I`ve already paid the mortgage 3x and my units are not rent ready still. The question is "should I factor in holding costs next time on my BRRRR" ?

Redgy

[Darryl Putnam]

@Redgy Saint-Germain The project is looking good.  Sorry to hear of your difficulties.  To answer your question yes holding costs should always be factored into your Brrrr's and Flips.  Grant Cardone often speaks about how we all tend to underestimate how long and how much any project might take.  It is often a good practice to run your numbers both with what is desirable and then again at the longest it could take and numbers still work.  

Given that you are so close to finishing I would suggest you start advertising it for rent.  Push the rent higher than market and measure your response.  If there is little or no interest at this higher number you can bring the number down in a couple weeks when you are closer to rent ready.

Good luck!