First time BRRRR strategy

[Martin R.]

Hello BP members!

I an investor based in Sacramento, CA and have recently closed on my first deal where we built a new home from the ground up! Being my very first deal, I was surprised to find that new construction was considerably cheaper than the average purchase price per home in my area. I am now looking to BRRRR my next deal and house hack it to kick off my longterm investment career.

I was wondering if it might be a better idea to build my next property and refinance out of it instead of acquiring a distressed property.  If the numbers work I can refinance out of a hard money loan and have a new construction property that would nearly eliminate any typical costs that are associated with older properties.

Thank you guys in advance for your advice and suggestions!

 

[Dave Peterson]

Hi Martin,

Congratulations on a successful first deal.  Can you provide some numbers?  I'm interested in your comment that building was considerably cheaper than buying a fixer.

Thanks.
Dave