New to Real Estate · Dallas, TX · Member since 2021 · 21 posts · 11 votes
Just getting started, looking at deals and was wondering if any of you investors regretted the idea of rehabbing on your own (labor). I know it saves money but probably puts more time that the deal isn't making any money. Is it worth it when you get started but not anymore as you scale?
There are lots of little issues here to what you are suggesting.
One, if you need a loan - then the lender has to approve you to be a worker.
Two, if you already have a full time job, you will now have TWO full time jobs.
Three, if you need a permit can you pull one? If you can't, now you're in a space that might cause complications.
Now, sometimes maybe it does make sense to do some work....but generally speaking, we pay a contractor to do it. The BRRRR Method has years and years of history and success buying off market properties at a deep discount in a state of disrepair. If you have to do the work yourself to make the numbers work - then it's not a deal. Just offer less on the purchase price.
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
3y
Hey @Rigoberto Torres Meza, I can chime in on this. A little bit of backstory, I've been OOS investing for a few years and have a handful of properties. I tried my hand at turnkeys, wholesaling and BRRRR.
Turnkey was the easiest process and the most fruitful. With wholesaling and BRRRR I was working many hours a day sourcing deals only to find out the numbers wouldn't work. Or, deals would fall through in the many steps necessary. It drove me nuts.
Then, I took that money and bought another rental instead of wasting my time. Sure, I miss on some extra returns but I can focus on my career and boost my income while also growing my wealth.
I think BP makes BRRRR out to be simple and foolproof by only interviewing the winners. It wasn't for me.
If you need help working out your first deal I'm happy to connect and help you.
There are lots of little issues here to what you are suggesting.
One, if you need a loan - then the lender has to approve you to be a worker.
Two, if you already have a full time job, you will now have TWO full time jobs.
Three, if you need a permit can you pull one? If you can't, now you're in a space that might cause complications.
Now, sometimes maybe it does make sense to do some work....but generally speaking, we pay a contractor to do it. The BRRRR Method has years and years of history and success buying off market properties at a deep discount in a state of disrepair. If you have to do the work yourself to make the numbers work - then it's not a deal. Just offer less on the purchase price.