D
ion McNeeley built a 16-unit rental portfolio using a buy-and-hold strategy, allowing him to retire in his early 50s. He experimented with the BRRRR method by purchasing and renovating a duplex in 2023, but warns that it's not suitable for everyone due to potential mistakes in estimating repair costs and timeframes.

    McNeeley focused on finding distressed properties with potential by looking at "days on market," which is the number of days a property has been listed. He found a duplex that had been on the market for over 100 days, negotiated a price of $400,000, and spent $62,000 renovating it.

    The unit he lived in during renovations was not livable, but after 10 months of work, it's now rented out for $2,125 a month. McNeeley avoided financing the renovation by buying the property in cash, which allowed him to avoid high-interest rates and time crunches associated with hard money loans.

    The "live-in BRRRR" has been lucrative for McNeeley, but living in a construction zone had its downsides, including no kitchen or bathroom for months. Now that the rehab is complete, he's considering refinancing or selling the property to avoid up to $250,000 in capital gains tax. He may do a cash-out refinance and use the funds to buy another rental, or sell the property and use the Section 121 Exclusion to exclude the gain from taxes.