Out of State BRRRR tips for newbies

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Out of State BRRRR tips for newbies

Jay Yoo
Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes

Calling out all experts!

I would like to start Out of State investing using the brrrr method. 
Does anyone know any online coaching service for OOS investing especially using brrrr method? 

I have set my specific parameters:

  • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
  • 80% purchase price of listing price
  • Rehab cost including 30% more than estimates
  • ARV 30% more than listing price
  • 3 months - 3 1/2 month rehab, 
  • Place tenants before 5th month
  • A few months later, re-fi, and cash out, and repeat.

I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

Thank you for your time!

5Reply
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Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
5y
Originally posted by @Jay Yoo:

Calling out all experts!

I would like to start Out of State investing using the brrrr method. 
Does anyone know any online coaching service for OOS investing especially using brrrr method? 

I have set my specific parameters:

  • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
  • 80% purchase price of listing price
  • Rehab cost including 30% more than estimates
  • ARV 30% more than listing price
  • 3 months - 3 1/2 month rehab, 
  • Place tenants before 5th month
  • A few months later, re-fi, and cash out, and repeat.

I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

Thank you for your time!

 Hi Jay, welcome to the site! I wouldn't pay much, if anything, for an online coaching program. Whether, I would pick people's brains on BP and research the different forums, podcasts, and books out there. That'll save you a lot of money and I also think you could get a better education that way. You will also learn a ton on your first deal. Columbus is great for BRRRRs.

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  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     Hi Jay, welcome to the site! I wouldn't pay much, if anything, for an online coaching program. Whether, I would pick people's brains on BP and research the different forums, podcasts, and books out there. That'll save you a lot of money and I also think you could get a better education that way. You will also learn a ton on your first deal. Columbus is great for BRRRRs.

    6Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     I think your rehab time is aggressive at least for Columbus, Ohio. Contractors are slow here if they have never worked for you before. You need to become their meal ticket and then they will move!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Craig Biddle
    Member since 2020 · 2 posts · 0 votes
    5y
    As a Pittsburgh real estate agent and investor, I have a few favorite markets for rentals.  Good zips are 15212, 15210, and 15213 (student housing).
    0Reply
  • Blaine Alger
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    5y

    I am located in the Wack. 

    Shoot me a text if you want to chat some more.

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

    Ill coach you for $4,000. But seriously rehabbing in general can be tough, doing it from afar....a skill! All of my rehabs went over budget and took double the expected time, and that was with a semi-competent contractor...

    0Reply
  • Ryan Robinson
    Investor · Laconia, NH · Member since 2015 · 11 posts · 8 votes
    5y

    @Zeke Liston, could you give a little more info on why you think Columbus, in particular, is good for the BRRRR strategy? Thanks so much!

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Ryan Robinson:

    @Zeke Liston, could you give a little more info on why you think Columbus, in particular, is good for the BRRRR strategy? Thanks so much!

     I think Columbus, Ohio has a lot of excellent team members for OOS buyers. The most important thing when investing out of state.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Ryan Robinson:

    @Zeke Liston, could you give a little more info on why you think Columbus, in particular, is good for the BRRRR strategy? Thanks so much!

    Columbus has the appreciation and the renter demand! When you buy a place in one of our up and coming area, its very easy to double;e its value, and to place high paying tenets, the two critical things to a BRRRRR.

    I did this with my 3 unit in Hungarian village. Put 50k into it and doubled the value, all while keep rents at top dollar! Again, doing this OOS requires a team and trust. Id suggest you start building that team now if you want to hop on the Cbus train.

    4Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    You lost me at "buy a SFH" lol. Why not a duplex at a minimum?

    1Reply
  • Jay Yoo
    OP
    Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes
    5y

    @Steven Wilson thank you Steven. I would like to connect. Will PM you. Thanks

    0Reply
  • Jay Yoo
    OP
    Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes
    5y

    @Michael P. MFH normally cost a lot more for rehab cost. I want to be very conservative on cost for out of state investing.

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Jay Yoo:

    @Steven Wilson thank you Steven. I would like to connect. Will PM you. Thanks

     Yes please do!

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Ryan Robinson:

    @Zeke Liston, could you give a little more info on why you think Columbus, in particular, is good for the BRRRR strategy? Thanks so much!

     Welp, @Remington Lyman and @Steven Foster Wilson beat me to the case. But I'm a fan of Columbus due to the population and job growth. Check out the chart!

    3Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Zeke Liston:
    Originally posted by @Ryan Robinson:

    @Zeke Liston, could you give a little more info on why you think Columbus, in particular, is good for the BRRRR strategy? Thanks so much!

     Welp, @Remington Lyman and @Steven Foster Wilson beat me to the case. But I'm a fan of Columbus due to the population and job growth. Check out the chart!

    Just like Zeke said the growth is incredible, here is another chart of the job growth, this is pulling tents into the area!

    2Reply
  • Ryan Cleary
    Investor · Palm Beach County, FL · Member since 2019 · 370 posts · 330 votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     I think your rehab time is aggressive at least for Columbus, Ohio. Contractors are slow here if they have never worked for you before. You need to become their meal ticket and then they will move!

     Hey Remington!  What would you suggest a proper time frame would be for a rehab in Columbus?  (full disclosure I am already working with an agent, he's actually already part of this discussion haha)

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Ryan Cleary:
    Originally posted by @Remington Lyman:
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     I think your rehab time is aggressive at least for Columbus, Ohio. Contractors are slow here if they have never worked for you before. You need to become their meal ticket and then they will move!

     Hey Remington!  What would you suggest a proper time frame would be for a rehab in Columbus?  (full disclosure I am already working with an agent, he's actually already part of this discussion haha)

     Dump him

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @Ryan Cleary:
    Originally posted by @Remington Lyman:
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     I think your rehab time is aggressive at least for Columbus, Ohio. Contractors are slow here if they have never worked for you before. You need to become their meal ticket and then they will move!

     Hey Remington!  What would you suggest a proper time frame would be for a rehab in Columbus?  (full disclosure I am already working with an agent, he's actually already part of this discussion haha)

     Dump him

     Reported^

    3Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Ryan Cleary:
    Originally posted by @Remington Lyman:
    Originally posted by @Jay Yoo:

    Calling out all experts!

    I would like to start Out of State investing using the brrrr method. 
    Does anyone know any online coaching service for OOS investing especially using brrrr method? 

    I have set my specific parameters:

    • Buy a SFH all cash including rehab cost in class C+, B- neighborhoods, low pricing market.
    • 80% purchase price of listing price
    • Rehab cost including 30% more than estimates
    • ARV 30% more than listing price
    • 3 months - 3 1/2 month rehab, 
    • Place tenants before 5th month
    • A few months later, re-fi, and cash out, and repeat.

    I looked up a couple of online coaching services but their beginner coaching service seems expensive, starting over $5,000. 

    I'm leaning towards to Columbus OH, Pittsburgh PA, Buffalo NY, Waco Tx for Class B- or C+ neighborhoods.

    I think that fully relying on brokers and contractors remotely may lead to a failure, and could run out of budget in the middle of rehab. There are many "What ifs" down the road of each process that I cannot learn from the book. 

    Thank you for your time!

     I think your rehab time is aggressive at least for Columbus, Ohio. Contractors are slow here if they have never worked for you before. You need to become their meal ticket and then they will move!

     Hey Remington!  What would you suggest a proper time frame would be for a rehab in Columbus?  (full disclosure I am already working with an agent, he's actually already part of this discussion haha)

     Ive done cosmetic rehabs in a month, Ive done full guts in 3. That was me present on the site. With a GC handling stuff Id suggest adding a month or two to those time frames. Also if you are working with an agent, why not ask him, if he doesn't know, then like remington said, why are you with him?

    2Reply
  • Wallace Pendleton
    Chicagoland Area · Member since 2018 · 22 posts · 46 votes
    5y

    Don’t need to pay for anyone to coach you. Watch the bigger podcast with Tony Robinson Jr to see how the majority of his properties are out of state and he was a newbie when doing it.

    0Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Jay Yoo

    Every dollar you send to an online coach for this will turn into $0. I highly recommend you do not do this. I also recommend you do not attempt this as a beginner from more than 1hr drive. I suspect you do not fully understand what you’re getting into both on the risk and reward side of this equation.

    0Reply
  • Ryan Mainwaring
    Rental Property Investor · Blacklick, OH · Member since 2016 · 286 posts · 253 votes
    5y

    @Jay Yoo I have BRRRR 6 properties in Columbus from full guts to cosmetic rehabs. We are now doing a mixture of flips and BRRRR, our current flip is a 75k rehab (Close to full gut but a little shy) that will be done in 6 to 8 weeks but this is outlier. If you know the right contractors, you can move quickly.

    Let me know if you would like to chat.  

    0Reply
  • Adam Melon
    Rental Property Investor · NY · Member since 2019 · 30 posts · 19 votes
    5y

    @Jay Yoo

    Not sure if I'm interpreting your criteria wrong, but ARV needs to = 70% of purchase price +REHAB COST. You can flirt with 75%, but you're flirting with not getting all your money back on the cashout, which isnt necessarily a bad thing. Can't chase perfection, chase experience.

    If you'd like to discuss OOS investing in general, shoot me a message. I'm as passionate as they come in real estate. Always down to chop it up and float ideas with others.

    0Reply
  • Whitney HuttenPro Member
    Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Jay Yoo First, you don't need a coach. If anything seek out a mentor who has full on system you can replicate to shortcut your path to growth and a proven track record of the system working for themselves but also for their clients (ie. the group that I run has purchased 183 properties since January 1 fo this year... during a downturn and a pandemic). Also, don't pay for anything UNLESS you fully believe you will scale your business quickly (and don't overpay... I see some horrendous prices out there). 

    As far as metrics, your numbers look pretty ambitious so you will most likely need to find direct lead sources to achieve those numbers (still way doable). I'd focus on the timing of the rehab.  I can get through a $20-30K mostly cosmetic rehab (with our foundation correction) in about 3 weeks.  Do 2-3 of these and get to know your team really well.  My advice is to avoid the large rehab now and save that until you have your systems dialed in a bit. PM me if you have Qs!

    Podcast Guest on Show How to Build Generational Wealth Without Losing it Along the Way
    1Reply
  • Kyle McCorkel
    Rental Property Investor · Hummelstown, PA · Member since 2015 · 638 posts · 653 votes
    5y

    @Jay Yoo

    I live in a low priced market and I do BRRRR's full time.

    BRRRR's are extremely difficult and complex to do even when you're local. I'll never tell anyone to never do anything, but I must stress an abundance of caution. There's 100's of things that can go wrong, which can be mitigated with experience and a good team, but for a newbie with no team, the chances of having a major issue are very high.

    Some issues that could arise include:

    - Buying too high because you overestimated ARV, because you don't know the market (or because you're relying on a "boots on the ground" "expert" who overinflates the numbers)

    - Running out of rehab money because you underestimated rehab budget, and contractors don't care 

    - The biggest/worst one: not being able to refi because you don't qualify, aren't local (local banks like to work with local residents) or getting a ridiculously low appraisal.  Now your money is tied up for months or longer.  Or worse, someone else's money is tied up, they want it back, and you have no way of getting it for them.

    The coaching services will (probably) make all this sound easy and they'll make it seem like the numbers will all work. But I've seen a ton of people come into my local "low priced market" thinking "OMG real estate is so cheap! How can I go wrong?" and then they're selling the property at a loss 6-12 months later.

    Maybe try doing it locally first before trying to go long distance? There's so much involved that you kind of need to do it to learn how to maneuver around all the obstacles.

    Sorry to be a Debbie Downer, just trying to tell you like it is.

    3Reply
  • Jay Yoo
    OP
    Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes
    5y

    @Kyle M. Thanks for the advice. I have a rental property in WA. Number doesnt make sense as I learn more. I know some say you can still make profit in New Jersey or San Francisco on the hills. But you gotta have a lot of capital to start. No way you can save that much money on W-2 job salary and support your family. So that’s way Im looking OOS and many investors agree as well. Do you have any better insights? Please share if you do!

    0Reply
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