It's not a great idea to trade an asset for a matching asset, especially a known asset for an unknown. 

I wouldn't risk that for the unknown.

I always worry when someone starting out (and I'm assuming that), uses profit figures that don't fit the house.I've seen too many people think they can make $x on a project, and end up making $1/2x and are disappointed, instead of being happy they made money on it.I go into any deal looking at the worst case scenario, if it works out better, and I plan on it working better, I am more than happy.Just remember to look at your numbers from reality, and always, always plan on unknown cost,,,10-20% is what I normally use, but it really depends on the rehab and what is involved.Look at the numbers closely on any deal, I know you said you get 2.5% on the buy side, and pay 2.5% on the sell side,,,but hopefully your selling for a lot more than your buying, so you still have the 2.5% on that money.andy

TBH it's probably best to get with them now while they're still relatively unknown and low base costs I can't imagine that will remain the same for long if they are able to achieve more success an a stronger social following.

In my mind, I'm giving myself reasons why this will work but the unknown is trying to outweigh my logic because of the "uniqueness" of the house as it's not typical and i'm not sure how much demand there is for this given my experience.Property: 2B/1B Cottage (condo)- 422 SqftPurchase Date: 9/8/06 for $130,000.00Amount Owed: Approximately $70,000.00Reason for Sale: Divorce, cannot maintain and water pipe broke last month.Comparable: .1 mile away, 720sqft condo for $184,000.00 so $255/sqftAssociation Fee: $290/YearWhen Rented: $1000/monthExpected Cashflow: 425+/monthHere, I figured my strategy to be to jump in and offer purchasing subject to the existing financing and taking over the $70,000.00 with a start date of a month or two from now to give myself time to find someone for a lease option agreement.What is your play here?

If it were a different situation (buying from unknown seller) I would likely use a Realtor but being that it is your mother in law it would be much more cost effective and easy if you were to go directly to a Title company or Lawyer.Also I am from Maryland originally.

Some of the best advice I think you can hear is : first decide on your risk tolerance, decide what is an acceptable return for you or your investors, then develops a simple model/ spreadsheet that indicates your assumptions, then plug in “as close to” what facts you can independently verify, then the anticipated unknown.

My biggest concerns are: 1. heat is electric, and this is New England; 2. no laundry in any apartments, and it would be challenging to add hookups; 3. exterior needs new siding, and probably lots of unknowns; 4.

Of course the hypothetical buy can have pluses too but it is an unknown and another location is less efficient for maintenance and costs.

I'm just curious if there's any unknown pitfalls or major differences between using the BRRRR strategy with multi-family units compared to single family homes.Thanks!