Would you BRRRR this 4 plex or just rent it out as-is?

[Teho Kim]

I'm looking for some advice on whether I should renovate or continue renting out as-is. Home in question: https://www.zillow.com/homedetails/120-Ramon-Cardenas-Dr-Del...

Background:

I'm closing on a 4-plex in a couple weeks that I will owner-occupy. 471500 purchase price using 0% down VA loan. Home has room for improvement looks-wise (see pictures in link). Market rate right now is $1200/mo and with renovations (quoted 60-75k in labor) it's hard to say because there aren't much data points, but I think I could fetch $1500-1600/mo. I am uncertain what the ARV would be.

What would you do in my shoes?

[Dave Meyer]

@Teho Kim It's difficult to answer your question with only one side of the question. You've listed what you can get in increased rent, but what would it cost you? 

So if I were in your shoes I would: 

1. Figure out what ARV is. You said you're uncertain what it would be -- why? If you're considering a BRRRR you need to know this.

2. What would the renovation cost? 

Only when you know these things can you determine if its worth the renovation expenses and vacancies.