I need advice!! Possible BRRRR method?

[Kevin Deady]

Hello BP community,

First and foremost...I have 0 deals under my belt. I’m still learning and studying as much as I can.

Now here’s my situation:

On a dead end road where I have been living for for 20 years, I found an off market deal. The house directly across the street from me is where my 94 year old neighbor had been living for 50+ years. She has since moved in with relatives and now her house sits vacant.

2 bedroom, 1 bath, ranch style house with a unfinished basement and a 2 car garage in Westchester County NY. The house is very much livable in its current state, the owner just hasn’t put any money into it in recent years. It seems very outdated with the interior looking like the Brady bunch house. Looking out my kitchen window I can see the house needs a roof (or second story), siding and updated landscape.

My thoughts are making an offer on the house (it’s off-market) given my good neighborly rapport and sprucing it up. The flat roof ranch seems to be begging for a second story IMO.

I’m new, nervous, and excited.

Sincerely,

Noobie

[Joe Jor]

Kevin,

If you plan on self-managing or are handy (as in repairs), something across the street has un-measurable benefits. If you are just starting out or sticking your toe in the water, you will save many dollars on contractors, gas, car wear and tear, whatever.  I have 2 multi-families next to each other; it is a god-send.

If you are aiming to "go big," I agree with the "guru's," in that you should outsource much of the day to day; it is hard to go big in Westchester due to the high cost of living/property. If this interests you, think long-distance.

As for the BRRRR, if you are unsure, you could buy it rent it out as is or with reasonable rehab (do your due financial diligence). I realize this would be non-BRRRR; you can always add a second story in 1 or 5 years if you still think it is the right decision and BRRRR then.

Joe