Spokane brrr investing

While Spokane investors utilize a wide variety of industry jargon, a great consumer acronym BRRR (Buy, Rehab, Rent, and Refinance) perfectly describes an investment style used by investors for years. Memorable acronyms aside, we’ll walk through each step of the BRRR strategy and point out some of the things that you should keep top of mind.

Buy

Not every property will work, and not every real estate market is optimal. It is important that you use comps from Spokane properties that will be competing with your Spokane property once the renovation is complete…similar to purchasing a potential fix and flip. You should never use an outlier property to determine value, no matter what type of investment you are looking to complete. Simply looking for a low purchase price on a property without doing your homework won’t get your investment strategy off to a good start.

Rehab

Two situations can quickly diminish profit and cause delays in your BRRR strategy — the rehab taking too long and the rehab going over budget. Project management here is key. If you do not have experience with this make sure that your contractor does. The last thing you want is for your project timeline (i.e. your anticipated profit) to get derailed. Having the right rehab financing in place can help to actually finance your project as you go – and be sure to look out for some of our additional perks, such as the Home Depot® Rapid Pass Discount. The more value you’re able to add to the property throughout the rehab, the more successful your refinance will be at the end … so this is definitely an important part of the process.

Rent

This one is easy … if it takes you a long time to get rent-paying tenants into the property that will create an obvious cash flow issue. Before you purchase the property, look at the vacancy rates and time to rent data in your target market. A property management company can help you here. Having a good property manager on your team should be part of your long-term investment strategy.

Refinance

The last step of this strategy entails refinancing into a longer-term loan…but don’t wait too long to do so! Not being able to refinance according to plan may impede on your overall bottom line. The success of your rehab AND the quantity of strong comps you received before purchasing can help make for a higher appraisal … and ultimately a successful refinance.

We’d love to sit down with you and discuss your investment strategy. At CIVIC, we have several financing options available for both short-term and long-term investment goals. Give us a call at 425-385-9014 and let’s get started!

Also Check Out: How To Get Your Listing Noticed in Today’s Market

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