Out of State BRRRR tips for newbies

Out of State BRRRR tips for newbies

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!

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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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  • Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes
    5y

    @Whitney Hutten I agree Whitney! Will get a property that need a light cosmetic rehab and my goal is to get 90% cash of my initial invested money out. Then expand the network and shop around more contractors. Thanks

  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    @Kyle M.

    This is so the truth! I used to do OOS BRRRs and I was successful doing them. However, all these things happened so now I just do value add MF. Less work, less stress. New investors need to hear this!

  • Investor · Seattle, WA · Member since 2019 · 139 posts · 54 votes
    5y

    @Lee Ripma

    Can you explain a bit what "value add" ?

    Are you just remodeling your existing multi family property? 

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