It can be very challenging for investors to BRRRR in competitive/expensive markets like Seattle. Often times, surface level underwriting will make a deal look basic and not feasible for this strategy. Many times the implementation of the right plan can turn a basic deal, into a MEGA deal.
On the surface – this property would not have BRRRR’d by simply using a fixed up comparable and leveraging the LTV.
I had to look at the full big picture, getting creative by strategically flipping two of the homes and use of access easements to capture the additional ADU and garage. The plan made the BRRRR not the buy.
I was able to put $133k in my pocket which I reinvested into another rental, picked up over $375k in equity, and collect $3,100 in rent after expenses.
Make sure to watch the full video to get the entire break down of the numbers on this MEGA BRRRR!
Also special shout-out to @beardybrandon of @biggerpockets who coined the phrase ‘BRRRR’ which has been a tremendous value to RE investors!
Any questions??! Fire away!