All Forum Posts by: Andrew Monnier

Would this be your first BRRRR? It is my view that BRRRRs are difficult to do local and more difficult to do remote. On the positive you already have experience managing a project from afar which is more than most people.

I question if you are confident that you can do a distant BRRRR then why would you choose to not do a local BRRRR instead. If the investment (or at least most of the investment) will be extracted and the tenant will be paying the mortgage, the cost is only important as to the value added by the renovation. High price markets typically have greater value added by the renovation.

When we renovate we expect at least a double the cost of the value add.  For example, a $30K rehab we expect to obtain at least a $60K value increase (at least $30K above costs).  I do not claim finding these properties are easy in San Diego, but I do claim the value added for good value adds in markets like San Diego exceeds the value these value adds would bring in less expensive markets.

Here are some things to think about 1) BRRRR are work 2) successful BRRRR locally are not simple 3) BRRRR from afar is more difficult than local 4) BRRRR benefit from higher priced markets because the potential of the value add via rehab has a relationship to the market price 5) successful BRRRR extract most (ideally all) of the investment so cost trapped in investment should not be driving criteria.

Good luck