How to buy BRRRR property in Sacramento and Surrounding Areas

[Katie Hollway]

Hi All,

I quietly joined BiggerPockets 3 years ago, did nothing until a few months ago. I read lots of articles/posts, listened to Podcasts, joined Webinars, watched YouTube, practiced deal analysis, connected with a few real estate agents and just got HELOC ($250K) approved.

But now I am stuck. I cannot find any good deal (I am only looking for duplex) in Sacramento area, either above my budget (I plan to use HELOC only for everything) or negative return by using the BRRRR tool.

Any suggestion? Should I change my strategy (i.e. current HELOC for duplex BRRRR)?

[Joe Bertolino]

That is just not enough money to find a duplex in an area that is not dangerous. There are deals to be had that you can BRRRR but not for $250K all in. I wish I could be one of those program selling guru's and tell you everything in the world is possible but its not. Duplex owners are somewhat savvy landlords (usually) but cash flow coming in and not a huge desire to sell unless there is a problem. Right now there are deals on properties with problems, usually tenants not paying, no ability to evict, etc. To fix those problems you need time and money. You need to carry the property till the eviction moratorium is lifted and then you need to get them out. Then you need to rehab, rent out and refi. In my opinion you are going to need to get a loan on top of the $250k to have a realistic chance of reaching your goal.