Planning the REPEAT phase of the BRRRR method for Italian real estate

For those who don’t know what BRRRR stands for, it is an acronym for Buy, Renovate, Rent, Refinance, Repeat. Every phase of the process builds up until the fourth step, when if following a solid plan, you are able to refinance and pull out a portion or all of this newly established equity and with step 5 use it to invest again, repeating the process.

I’m currently in the process of refinancing our current apartments, and this ‘new motivation’ villa not only will serve as a place to reinvest the equity gained, but also serve as the ‘repeat’ step in the process, since the hidden value I see in this villa, is to take advantage of its size and divide the spaces yet again.

Floor Plan analysis
I’ll try to give you a good visual of what my intentions are using the video from my tour.

The property one villa of 457 square meters with 70 square meters an 84 square meter 2 car garage, and 1130 square meter courtyard fenced on all sides. Did I mention the pool?
There are a number of ways to divide the property, but I want to reduce the remodel budget as much as possible, so I am going to keep adding and removing walls to a minimum, at least that’s the intention here.

Due to this, instead of splitting this property into what could be 4 units by filling in the vaulted ceiling of the main living space of the house, I'm going to keep the budget at a minimum and retain this major aesthetic feature of the front portion of the property and block access to the back portion of the property making two smaller apartments on the back side, both approximately 115 square meters in size. This would leave approximately 230 sm for my family to live in while creating two apartments that we would rent intending to cover the cost of financing the entire villa and more.

You might be asking, but why is this giant villa on your channel about cheap real estate? Obviously, it’s going to cost a lot more than a 1 euro home!

True!

Sit back, relax and enjoy the rest of the tour, press that subscribe button, or the like button if you haven’t already while I break down the costs for you.

Being valued at 418,900 euros in 2014, this property has seen a number of auction procedures come and go until arriving to us today for the base price of 266,250 euros. ‘but that’s not all!’

Like I mentioned last video, I am able to offer 25% less which brings my offer to 199687.50. That’s 47.6% of the initial value. Now do you see why this property is being featured on my channel? Assuming no one else comes, that would be my winning purchase price for this property. Since this property is most likely considered a casa di lusso, I won’t be able to request the prima casa tax benefit and will have to pay a 9% tax on purchase plus about 400 more in other taxes.

If I was paying in cash, that would be all, but since I will be using a mortgage, I will have to consider a notary fee as well. Don’t you just love how banks complicate things.

Видео Planning the REPEAT phase of the BRRRR method for Italian real estate канала DauvO