Running the BRRRR Equation Numbers and No Properties Seem to Work
Hi all,
Currently looking into getting our first BRRRR property here in Utah. I have been looking for properties that fit the script. Have found some pretty beat up properties that need a lot of TLC.
However, when I place them into the pre-purchase equation of (ARV *0.7) - repairs = Max purchase price none of them are even coming close to where they would need to be.
Even with adding bedrooms, bathrooms, cosmetics, etc. it doesn't seem that any of those renovations would even get us close to the price we would need the new value to be.
Obviously, the Utah market is booming and the current sell price of these homes are too high. But, I am looking into the bottom-of-the-barrel properties that have the ability to be improved and they still don't work.
I have been looking on AllUtahHomes.com, AllUtahListings.com, KSL.com, etc.
Does anyone have any advice here? Do I need to be looking elsewhere on different listings? If so, where could I look for the proper properties?
Is it just a matter of the Utah market being too inflated and I need to look elsewhere? Out of state? More remote locations in Utah? (I have been looking between Sandy to Spanish Fork.)
I don't think going out of state at this point would be wise because I am just starting and need to get experience in areas am more familiar with here.
Any and all advice would be much appreciated.
Thanks!