What are the Best Markets right now to implement the BRRRR strategy?
Generally the best markets for the BRRRR strategy are less expensive, cash flow markets where the rent-to-cost ratios are higher. Generally you'll find these in the Midwest and Southeast.
Hey, I did research on BRRRR and I think the best markets are Indianapolis, Detroit, Kansas city MO and some parts of FL, TN and GA.
My wife and I have been looking at different markets for a while now and have recently decided that our time would be better spent getting to know one market rather than spending more time analyzing several markets to choose from. @Viktor Chornobay 's list covers many of the common markets we have come across. We will be focusing on Indianapolis. There are many reasons we are choosing Indy, but it's mainly just because it comes up a lot as a hot market right now and seems 'good enough' to get started with. It is certainly not as good of a reason I imagined myself choosing when I first started dreaming about real estate investing, but frankly we are just tired of being stuck in analysis paralysis and want to get started in the school of hard knocks.
Bryan - thanks for your thoughts
@Sean Harrington Thanks for asking! I feel like it has taken way too long for us to get started but we are finally really close! We are currently working with several wholesalers in the area analyzing properties daily. So far nothing has exactly met our criteria but there have been enough that have been close that I know any day now we will find what we are looking for. I have come to know the strange feeling of passing on deals that I know are good deals but don't fit our criteria so we have to pass. For example we have seen many properties that are ideal flip candidates but they just won't cashflow after refinancing and since we are looking to buy and hold we have had to pass. Others seem to have a lot of potential but are in speculative locations. We have a property manager lined up that we are bouncing any prospective properties off of, this is helping us avoid those properties that the wholesaler says "This is in a great neighborhood" but it's not in a great neighborhood. We tried working with realtors but didn't have any luck with them. The wholesalers we are working with tend to be new which is great because they are working their butts off to find us what we are looking for but at the same time we have to do extra due diligence since the ARVs and repair estimates can be off as well as ensuring the location is what they say it is.
It seemed impossible in the beginning but it's getting more real every day. I have no doubts that it will work out.
What property manager are you going with in the area if you don't mind me asking?