Best Locations in US to BRRRR?

8 Replies

Hello BiggerPockets!

My name is Jonathan. I currently live in Dallas and I've been looking for deals for a few months, but just about everything I've come across seems to be overpriced. I might move to a different city in Texas or even a different state in the next few years if the opportunity presents itself. I'm curious, which cities or markets seem to be good for the BRRRR (buy, rehab, rent, refinance, repeat) strategy or simply for buy-and-hold properties?

Thanks!

Any city can, but it comes down to understanding the city/market enough to find the good deals. You're better off finding a place you understand the demand.... and you can afford to invest.

Originally posted by @Matt K. :

Any city can, but it comes down to understanding the city/market enough to find the good deals. You're better off finding a place you understand the demand.... and you can afford to invest.

 I never said I didn’t have money to invest. But a duplex for $500-700k doesn’t make sense in any market (for me).  

Originally posted by @Jonathan Fowler :
Originally posted by @Matt K.:

Any city can, but it comes down to understanding the city/market enough to find the good deals. You're better off finding a place you understand the demand.... and you can afford to invest.

 I never said I didn’t have money to invest. But a duplex for $500-700k doesn’t make sense in any market (for me).  

 I never said you didn't either, but if you have 500-700k don't waste your time on a duplex. You can get a portfolio at that level. The point of my comment was more that most people look to OOS because it's what their budget allows, otherwise they'd buy locally. 

Howdy @Jonathan Fowler

I agree with @Matt K. that many cities/states probably have the types of distressed properties you need to target for BRRRR deals. Texas is a very good state for this strategy. Investors in the Houston and San Antonio areas use it quite a bit. I'm sure there are those around the Dallas Metroplex that do also.

The real key is having a solid team to help you find, purchase, and complete the deals.  You need a good Realtor with knowledge of your target Market and the types of properties you want.  It’s also important to have a good Property Manager to help determine good neighborhoods and bad ones.  These are my prime sources for vetting properties.  Along with me doing “Driving for Dollars “, using Wholesalers, and Birddogs.

DFW has deals, you just have to either source the deal yourself or sign up for as many wholesaler's lists as possible and weed through the bad deals.

@Jonathan Fowler , in what part of Dallas do you live and in which areas have you been searching for properties?  I have been an agent/investor for a 10+ yrs and have had success in the Austin market.  Unfortunately, it sounds like your search area is getting to be like Austin: very high entry price point.  

On that note, I decided to restart my practice in San Antonio.  Rental rates are solid and you can find SF or duplexes that need some work for $60-300K, depending on location and condition.  My brokerage specializes in this type of property, and as @Jeff Richardson noted, you just need to get signed up with some wholesale providers and start running the numbers on the opportunities presented to you.  

If you have questions about the San Antonio or Austin markets, feel free to give me a shout.  Also if you would like some of my wholesale contacts in the DFW area, let me know.  Glad to help on either side.  Take care.

Hey @Jonathan Fowler I have a few friends in Dallas that are full-time investors and they too are having a tough time finding deals.

To find the right city for you I would speak to a couple mortgage brokers to see what you would qualify for as far as refinancing goes. This will help you narrow down your markets. I have some investors from Austin that can refi houses in the $130K range so Austin doesn't make much sense.

Texas has a lot of great areas for buying rentals. If you have any questions on how to narrow down an area let me know.

Hey @Jonathan Fowler I'm not sure where you're looking as I'm finding deals pretty regularly. Now if you're wanting deals that are 60-65% less rehab in the North Dallas market then yeah, you may be overshooting your expectations... but it really depends on what you're trying to look for. I purchased a cash flowing duplex in July and I just purchased a BRRRR near Addison that will be cash flowing tremendously when I get done with the work. I'm not actively mailing, door knocking, or doing anything crazy in terms of finding my deals either - just being active in the community and keeping all my options open.

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