My first BRRRR....HELP!

[Ty Upshaw]

The house is in a non appreciating area....section 8 renters will be my tenants. Not sure if the numbers will allow me to refinance enough cash out for another project. At 10,500 purchase price cash from my pocket....30k rehab...my estimate not contractors. CoreVest will give me the 30k for repairs, If the ARV comes in at 50k or higher. So l will wait to see what repair estimates are....if it's feasible to add 1 bedroom making it a 3/1....the ARV of course will be higher allowing me to have enough to pull out....my question is....when l pull the money out....l pay CoreVest back 30k....which leaves me nothing for another project....??....l need CLARITY on the BRRRR.

I think l need to step up in property calibre ....please advise.....Tyrone

[Salvatore Lentini]

@Ty Upshaw - do you really need to put 30K in rehab into a SFR that will only be worth 50K when you're done? Generally, when you rehab to rent you spend less than rehab to flip because you don't need to do all new kitchen cabinets, appliances, new fixtures etc. Repair what's broken, add lipstick and rent.