1st BRRRR Investment

[DMikal Mitchell]

Hello BP!

First time investor here! I have chosen to start out my real estate investing journey out doing the BRRRR strategy. I have done month's of research (I am a over thinker), learned how to analyze and calculate the numbers, I have the capital, I even bought David Greene's BRRRR book and read it TWICE. For some reason I am still nervous because this is sort of like my one and only shot so I don't want anything to go wrong! Although, I believe experience will be my greatest teacher so I just want to jump into it, but I want to make sure I have this process right so there is as minimum risk as possible. I would appreciate any insight on if I should add or subtract something from my mental checklist when purchasing.

1. Find a buyer's agent.

2. Find a home. (70% or less than ARV)

3. Review comps and make sure ARV is accurate.

4. Make an offer to purchase with inspection contingencies.

5. Once accepted, have inspector and contractor evaluate property.

6. If rehab is within budget (rehab+purchase price=70% of ARV) make an offer.

7. If rehab is NOT within budget, change offer to whatever makes the numbers make sense in above equation.

Am I going about this the correct way? It seems simple and easy but almost to easy. Am I missing anything? Should anything be added to this process? If so where? Feel free to share tips or any good advice as well. Thank you all in advance!

[Jay Hinrichs]

in theory that all works in practice in todays market in areas were folks are buying rentals it can be pretty tough

which sometimes leads folks to buy questionable areas just to force the numbers.. so be cautious there.

I would only do a first BRRRR local where you can drive there and make sure it goes on schedule and on budget.

doing it where you cant drive to it.. takes on another level of risk that no matter how its couched it is risky Just is.