Using BRRR for the First Time to Buy and Hold

[Angela Henderson]

So my husband and I did our first refinance on our investment property and have now found another property that we want to make a cash offer. The home was a rehab where the seller is looking to flip and we think they did a stellar job. Unfortunately for them, they have had to drastically reduce the price and we're thinking they have had trouble selling because the house is a row and and is in the middle of two homes that have obvious fire damage (but they still have occupants). So, the house would make a great buy and hold for us but my husband is worried that the fire damage on the neighboring properties will result in a low appraisal once we get a tenant and look to implement BRRR. Can anyone advise how a previous fire where all repairs have been made to our property but not others would impact our appraisal? Any advise is greatly appreciated! thanks!

[Chris Seveney]

Angela Henderson - I cannot answer about appraisal part (but I would think it would come in low). I would be skeptical of a fire damaged home and check with the county that all permits were pulled and work was done properly. While cosmetically it may look good, behind the walls is what matters

Also I am slightly confused as you noted the property was rehabbed - a BRRRR is not buying a property turnkey but buying a property needing rehab so when you refinance it you can hopefully pull out your $ from the equity you have built in the property