Advice needed--BRRR- SFH

[Steven Nguyen]

Need advice: first deal as a beginner. Illinois--Single family house 360k asking- built-1920s-told that it will need repairs. Available for viewing in 2.5 weeks. Will look to get construction guy in to view it. Money not liquid- currently in crypto. What are the next steps---

BRRR seems like a good method for this- as theres potential for long term renters(near elementary and highschool)

Step 1- look for a hard money loan(will they also cover construction?- if 360k asking then all in at 420k?- whats the avg rehab- how much down payment will be needed?

Step 2- close and start rehab-- would need to pay holding cost during rehab?- pay hard money/utilities?

Step 3- hire property manager to manage/look for renters

Step 4- look to refiance out of the hard money loan(how long after having a renter in can we refiance?)-- when would you look for the company to refiance into/what if you dont qualify-how do you kno itll go through/not get stuck with the hardmoneyloan?

Anything im missing/have any tips for. Tia!

[Jaycee Greene]

Quote from @Steven Nguyen:

Need advice: first deal as a beginner. Illinois--Single family house 360k asking- built-1920s-told that it will need repairs. Available for viewing in 2.5 weeks. Will look to get construction guy in to view it. Money not liquid- currently in crypto. What are the next steps---

BRRR seems like a good method for this- as theres potential for long term renters(near elementary and highschool)

Step 1- look for a hard money loan(will they also cover construction?- if 360k asking then all in at 420k?- whats the avg rehab- how much down payment will be needed?

Step 2- close and start rehab-- would need to pay holding cost during rehab?- pay hard money/utilities?

Step 3- hire property manager to manage/look for renters

Step 4- look to refiance out of the hard money loan(how long after having a renter in can we refiance?)-- when would you look for the company to refiance into/what if you dont qualify-how do you kno itll go through/not get stuck with the hardmoneyloan?

Anything im missing/have any tips for. Tia!

Hey @Steven Nguyen, welcome to the BP Forum! Most of the HMLs I work with will lend up to 85% of the PP and up to 100% of the rehab costs, but the loan can't exceed 75% of the ARV.

How long will the rehab take and what will the rent be once the property is rehabbed?