BRRRR Question -- Multi-family?

[Matt Ferch]

Hello, I'd like to get some perspective on BRRRR investing. Whenever I've heard this approach talked about, it's almost always in the context of a single family residence. That said, is BRRRR investing a viable strategy for multi-family? Why or why not? Anything you could add to this conversation would be appreciated. Looking to learn. Thank you!

[Kevin Sobilo]

@Matt Ferch, I just refi'd my 5th BRRRR deal and am rehabbing my 6th. All of them are single family, but I have looked for small multifamily deals as well.

One of the reasons people gravitate to BRRRR is that they can acquire properties and grow their portfolio faster by potentially getting back all of their money if not MORE when they refi. My last few BRRRR deals I have refi'd out more than I put into the properties. This lets me move right on to the next one right away. Much faster than saving up cashflow for another down payment.

When I have looked for multi-family deals, I have had a harder time finding ones that would allow me to refinance out MORE than my investment. When I make offers, the best it seems I might do is get my money out at refi. In addition since I have been hands-on with the rehabs a multi-family is a large project for me and would take longer to do with more carrying costs to factor in.

So, for the deals I have evaluated they have had more risk and a little less potential for reward than the single family deals I have found. However, this might be different in your area.