Good and bad Que’s for BRRRR Investing

[Reagan Huefner]

I have some properties that have passed the "quick test numbers" and I am now going to walk through them with my realtor. What are some things you look for that make a good and bad properties for BRRRR investing?

[Whitney Hutten]

@Reagan Huefner Agreed... the list is long, but here is a quick snapshot:

1. Location, location, location and great class of property (here is a guide to help you)

2. Be sure it hits every point that will allow you to refi easily (here is a guide)

3. Great layout and property grounds (personally, I like simple 3/1 or 3/2 ranch boxes)

4. Have your walkthrough checklist to capture everything you need to consider on your budget (flooring, paint, cabinets, countertops, lighting, HVAC, water heater, electrical, roof).  Also inspect the foundation for water intrusion, and driveway sidewalks for cracks.  Also note any trees that are overgrown and need to be removed (these can get very costly).

5. Also take note if the property is habitable now and would qualify for conventional financing or if you need to use HML. This you can gleen from the above list, but taking a quick note will help you later on as you are crunching that data.

That will be a good starting point.  Develop your system as you do these walkthroughs so you can gather data quickly and efficiently to tighten up your numbers.

J Scott's book on estimating rehab costs can help you!