Kansas City BRRRR: Buy, Live-in Rehab, Rent, Refinance, Repeat?

[Sam Sharpe]

I'm looking to buy a value-add property in the Kansas City area and essentially doing the BRRRR method. My thought is to buy a livable home that needs some TLC and maybe doesn't cash flow immediately but if I were to live in it for two years and allow the rent to catch up a little bit with the expenses I could then convert it into a rental and move on to the next one. I currently own 0 properties. This approach would allow for us to save up for the next house while hopefully also building some equity.

I would be holding onto this property long-term and buying in a B neighborhood. I think I was just recently inspired by the interview with @Charles Roberts to not be so frantic about making a deal work and being able to sleep well at night!

I welcome any comments, thoughts, concerns, encouragements, and experiences!

[Lee Ripma]

@Sam Sharpe

Go for it man! I think you've got to pick an area that has duplexes to fourplexes to make your first house hack on a MF work, that is something folks often overlook. That is awesome to say I want a fourplex, but there needs to actually be a stock of them where you are willing to live. You can burn up your FHA and get a low down payment loan or you can put down 25%, what you decide to do will largely be based on your goals. Figure out where you are willing to live, what the stock is there, your price point, and start shoping for the right thing! Maybe look for cosmetic value add on the first one unless you really want to get dirty on a full reno. If I lived in KC I would totally do this. I would probably do it in a really nice walkable neighborhood and likely pay a bit of a premium since I'd be living there. I invest in KC now and I certainly feel safe in the areas that I invest. However, if it were my own residence I might change up the location a bit. Read set for life if you want motivation to buy a house hack as your first RE investment!