Hunting down my first BRRRR investment - Vacant or occupied?

[Jesbran Silva]

Hey Guys!

New here and currently in a position to purchase my first BRRRR investment (looking into the Central California area) but I ran into a question I have yet to find the answer to. When looking for a BRRRR property should I only be focusing on vacant properties since I'd be rehabbing it or can this be done with tenants? If it's been done with tenants how would you approach raising rent after or remodeling? Thanks

[Whitney Hutten]

@Jesbran Silva I would highly suggest your first BRRRR be vacant. One less piece to handle. However, moving forward, taking over a BRRRR property with a tenant in place could lead to a good deal especially if the landlord is needed out... and you can take that issue of his/her hands, move the tenant out, then BRRRR. I've actually picked up 3 in a package deal that way (the tenants were performing... so that was a plus), and then gradually BRRRR'd them over the next few months as leases renewed. Essentially, I had my holding costs paid for as I worked through the projects.