{"id":184366,"date":"2025-08-20T14:00:23","date_gmt":"2025-08-20T20:00:23","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184366"},"modified":"2025-08-20T14:02:00","modified_gmt":"2025-08-20T20:02:00","slug":"what-to-do-when-your-local-market-becomes-too-expensive","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/what-to-do-when-your-local-market-becomes-too-expensive","title":{"rendered":"Is BRRRR Dead? What to Do When Your Local Market Starts Listing $500K “Fixer-Uppers”"},"content":{"rendered":"\n

This article is presented by <\/span>Rent To Retirement<\/span><\/a>.<\/span><\/em><\/p>\n\n\n\n

Imagine you were looking for a potential rental in your neighborhood, only to find a three-bed, one-bath fixer-upper listed at $650,000 and a potential rent price of just $2,300 per month. I’d spit out my coffee.<\/span><\/p>\n\n\n\n

But unfortunately, this scenario isn’t just imagination for some investors. The truth is that this<\/span> isn\u2019t the same time as when the 1% rule was king, and you could find a house to buy for $230,000 that would rent for $2,300. But now, with interest rates hovering near 7%, home prices rising, <\/span>property taxes<\/span><\/a> at their peak, and <\/span>insurance premiums so high<\/span><\/a> you\u2019re wondering if your agent is insuring a spaceship, that deal is dead on arrival.<\/span><\/p>\n\n\n\n

You’re not alone. Across the country, investors in high-cost markets like California, New York, and Colorado are experiencing a collective “what now” moment. The old strategy of buying close to home and hoping for <\/span>appreciation<\/span><\/a> has been replaced by bidding wars, paper-thin margins, and rent control laws that feel like they <\/span>were written<\/span> by someone who has never owned a toilet.<\/span><\/p>\n\n\n\n

So what do you do when the numbers don\u2019t work in your <\/span>own<\/span> backyard? You take a deep breath and start investing in someone else\u2019s.<\/span><\/p>\n\n\n\n

Meet Sarah: The Accidental Out-of-State Investor<\/span><\/h2>\n\n\n\n

Sarah is a teacher from Los Angeles who saved up for her first rental. She spent months searching for a property in her neighborhood and finally started making offers. She narrowed down her choices and decided that looking at the lower end of the market would make it work. Spoiler alert: It did not work. <\/span><\/p>\n\n\n\n

She found a one-bedroom condo with an HOA fee that could pay someone\u2019s salary in the Midwest. As she moved through the purchase process, she quickly realized how much it would cost <\/span>to <\/span>actually<\/span> own the place<\/span>. <\/span>This<\/span> would put her into the red each month, and the only way to achieve profitability was if her tenant accidentally left behind a winning lottery ticket. She needed to pivot and see what more experienced investors are doing.<\/span><\/p>\n\n\n\n

That\u2019s when she found <\/span>Rent To Retirement<\/span><\/a>.<\/span><\/p>\n\n\n\n

In two months, Sarah bought a turnkey duplex in Oklahoma City. Here\u2019s what her deal looked like:<\/span><\/p>\n\n\n\n