Hello Bp Team,
I am a newbie and after educating myself with reading/podcasts I have officially decided I will start my real estate journey using the BRRRR method. My market will be in East Orange, NJ on single/small-multifamily homes. I have done research on the area and it looks great. But I know it's also always best to get info on the market from active investors out there or just living there in general. Does anyone know how the market is like in East Orange, New Jersey.
Have you looked at the forum for that area? I don't know it myself, but there's a lot of good specific information in thrclocal forums.
@Erin Henry Thank You ! Will look
East Orange is great, but you have to know it block by block. The flip values are actually too high right now I believe, I don't think they are sustainable so your buy-in on a BRRRR property might be higher than you expect if it doesn't require major rehab. Both East Orange and Orange are selling very high in spots, but still have deals. The taxes are the real killer. Out of state people don't understand how you can have a 200k home in East Orange with 9k in taxes, but we do. So you have to be careful of that.
@Jonathan Greene wow thank you so much !! Will definitely look more into other areas to see if I can find a market that works better for the Brrrr method.
@Tracy Belizaire you can BRRR in East Orange and Orange, but your best bet might be a delayed BRRR. Live-in house hack for one year, rent all units for one year, and then refi out with more seasoning and appreciation. The best deals need more renovation than first-timers are bargaining for, but those have the best upside. You don't want to buy high on a BRRR option. If you do single family you can do well with a delayed BRRR also, but no cash flow in the first year if you live-in.
@Jonathan Greene wow thank you so much for this !