How To Rehab Rentals in 2024 (BRRRS Training)
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Rehabbing a distressed house can be both overwhelming and profitable, with success hinging on the information and knowledge one possesses. A series of videos aim to provide valuable rehabbing information, sharing best practices for successful rehabbing and encouraging viewers to like and subscribe. One video covers the 'BRRRS' method, which stands for 'Buy', 'Rehab', 'Rent', 'Refinance', 'Systemize', emphasizing the importance of finding distressed properties and understanding rehab costs. There are two types of people in rehabbing: those who are lost and those who are systemized. The focus is on systemizing rehabbing for comfort and efficiency, with a crucial emphasis on adding equity correctly for the 'BRRRS' method. Practical teaching without editing is highlighted, along with discussing the general cost per square foot in rehabs. The rehab part of the 'BRRRS' method involves using the max allowable offer formula for property valuation, comparing similar properties to determine the extent of rehab needed, and making finishes slightly better than the competition. Finding the right contractors is crucial, as good contractors can maximize overpaid properties while bad contractors can ruin good ones. Mistakes in rehabs can be costly, and investors and existing contractors are top referral sources. Local meetups and Facebook groups can help find contractors. The video aims to stay under 15 minutes, with the presenter discussing opinions on their pants and the three types of rehab: light, mid-level, and gut. Light rehab involves surface-level replacements, with costs influenced by market conditions. Light rehab costs $20-$30 per square foot, useful for quick property assessments but not for offers or budgets. Mid-level rehab includes bigger items like kitchens and roofs, costing $35-$50 per square foot. Gut rehab involves extensive work, costing $55-$80 per square foot, with inflation increasing rehab costs. Property valuation must consider rehab costs, and market conditions affect rehab expenses. A second set of eyes can save money and prevent losses, as illustrated by an example of a miscalculated property size and value. A mentorship program offers guidance and deal evaluation, encouraging viewers to subscribe and share the video.
Rehabbing a distressed house can be both overwhelming and profitable, with success hinging on the in