Can you use the brrrr method on a semi turn key property?

[Javier Toscano]

Hi all, first post here..

Im in the process of closing on a house in Richmond VA, the inside of the house is already completely renovated. I have tenants ready to move in towards the end of the year and I'd be positive in cash flow. There's not much rehab that I can do besides turning a half bath to a full bath or adding an additional room. I could also add a deck and or patio where as the lot is a decent size for the area.. I'm still waiting for the house to get appraised.

Would I still be able to use the brrrr method or should I just focus on having tenants covering the mortgage and then some?

[Stephen Glover]

Simply put, you can BRRRR if you (or your private lender) owns 100% of the asset and can appreciate the home to be worth 20%+ more than your total cash invested including repairs.

Of course, numbers could fluctuate either way and provide different results, but that's the easiest way for me to put it. If your deal fits, then BRRRR. If not, plan your next one like @Jonathan Lyford mentioned and enjoy the cash flow from this one.

Last note:  Generally the improvements are done BEFORE leasing.  This way the rent will reflect the improvements you've made.