First Attempt to BRRR

[Lisa Cox]

I've been learning investing for about a year now and have been afraid to pull the trigger on opportunities due to lack of contractor to help with estimates and suffering from analysis paralysis. I'm trying to do an analysis using BP's BRRRR calculator but I don't fully understand how to complete it and what info to use if I'm putting down 30% of the purchase price to obtain 100% HML rehab budget also. Any thoughts or advice are welcome. Thanks.

[Mitch Larrivee]

Quote from @Lisa Cox:

Quote from @Mitch Larrivee:

Following this.. thanks for posting! Would love to hear updates as you go through the full BRRRR process.

I'm curious if you have talked to any contractors yet or you have and they don't want to give estimates? 

Good luck!

 I'm stepping way out of the box. I should probably just flip this house since it's my first but I'm even nervous about figuring all that out. I haven't been turned down by contractors. I just don't know of any so I am in the process of researching and vetting now.

 That's great. Talking to them will help. The good ones always seem to be a wealth of knowledge. I have only done renovation projects while living in the home and then sell after a few years. 

Late last year bought a few rentals with tenants already in them. All I can really say is I am 100% going to buy cheaper and rehab all the units next time. I've been hit with a constant stream of repairs on the duplexes I bought. Definitely negative cash flow on it.. So the way I look at BRRRR is I'm just looking at it as buying a rental but giving myself the chance to (1) buy cheap (2) fix everything so there are no unexpected costs and then (3) now that I have a beautiful, newly maintained property I can refi some cash out.

That said, I have not done a BRRRR yet so I'm right there with you on some of the nuisances. But I hope this helps calm the jitters a bit. BRRRR definitely is the smart way to go.