Those transaction costs can annoyingly reduce your net gain on the deal. 

The West and South posted more modest gains of 6.9% and 0.5%.

Even in those cases, it’s difficult to create a significant gap between the purchase price, rehab costs, and ARV (After Repair Value).Investing in today’s market is incredibly challenging, and I’ve found that the BRRRR strategy is one of the least effective approaches right now.Let’s keep in mind that BRRRR gained popularity before 2020.

It takes time and patience, but the long-term benefits are well worth it.I’ve personally gained invaluable knowledge, listings, and deals from friendships I’ve built over the years.The more people you engage with, the faster you’ll achieve your goals!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $20,000

Cash invested: $45,000

Sale price: $99,000

Contributors:
Peter Vekselman

Partner Driven...

It’s better to start small and gain experience than to get stuck overanalyzing.Keep the questions coming!

@Jade Frank I agree with what @Dominic Mazzarella and others are saying here, but If you find the downside outweighs the gain and you ultimately decide to sell the property, Since the property was held for investment use it would qualify for a 1031 exchange. 

At the very least you will want to have some general foundations set because with time you will modify processes and the learnings via experience you gain.

We also have this specific property listed on FF in hopes of gaining a 3 month + rental through the winter.

Looks better for them and gaining a sale and higher property value gives a larger commission.