All Forum Posts by: Nicholas Spinazze

Can the BRRR strategy be applied to new construction? It seems like you would add value by building similar to how you add value by rehabbing. If so how could I use the bigger pockets BRRR calculator for our situation given that last year we completed purchase of an empty lot which we split and are building single family units and ADUs on. We paid 120k for the lot and our construction costs are estimated to be 137 psqft. We are building 2700 sqft on each lot (including ADU sqft'age) for a total cost (including the lot) of approximately 859,000. We expect these properties to very conservatively appraise for 220 psqft, or 1,188,000. So it seems like we are creating 329000 of equity.