BRRRR for Smaller Multifamily Properties?

[Michael Hunt]

Hello,

When you BRRRR a small multifamily property (Duplex to Quadplex), do you vacate the tenants while you do the rehab portion? It seemed pretty straightforward for SFH (one tenant), but I wanted to see what the common tactic was for small multifamily properties with more tenants.

Is it common to BRRRR small multifamily properties or is it more for SFH?

Do you recommend doing my first BRRRR with a SFH or is multifamily okay if I'm interested in multifamily? For context I'm a complete beginner looking to do out-of-state investing.

Thanks in advance!

[Austin Steed]

A BRRR will work the same for a single family and small MF. I've done 4 duplex BRRR's one single family and one 11 unit building in Columbus OH. All the same, and yes we get everyone out as it's better to just do the whole thing in one swoop in my opinion.

The larger multi family was great because the construction loan rolls into permanent  financing once we get our occupancy. Since this project took just about 1 year to complete we're rolling the 720k constcution loan and are able to keep our 4.2% rate. It is a 25 year am though and is locked for 5 years but I'll take it. Better than being in the 6s or 7s!