BRRRR SFH OR MULTI FAMILY

[Tarek Emam]

Hello all,

I need some clarification on on wether or not BRRRR works on multi family homes. I am based in New Jersey and I'm a new investor. In jersey, multi family is definitely the way to go when it comes to investing in real estate out here in New Jersey. My question is, can BRRRR be done on a multi family? I have done a lot of research on BRRRR and I even bought Davids Greene book on BRRRR but it seems like in the beginning stages, he is only talking about the BRRRR method only being applied to single family home. Can BRRRR be done on multi family homes the same way it would be done on a SFH?

[Gaetano Ciambriello]

2-family

Purchase price: 400k

Down-payment: $14,500 (3.5% down FHA)

Initial loan: $385.5k

Repairs: $50k

ARV $600k

Cash-out refi 70%. New loan of $420k. Pay off old of 385.5k. Walk away with $25k of initial equity of about $65k... rough number I did off top of my head, but it works on multi's as well.