How much cash do I need to BRRR in Birmingham Alabama?

3 Replies

Hello Birmingham BP members! We’ve been stockpiling money for the last 6 month getting ready to buy in Birmingham. I’ve got $23,000 saved so far. I was planning on putting 25% down on something close to rent ready for my first one. Since we’re saving money faster than I expected, I’m thinking of maybe waiting a few months longer until I have the money to pay cash and BRRR. Could I realistically BRRR with say $50,000? Also, what neighborhoods are best for the BRRR strategy? I’ve been looking at Hueytown, Eastlake, Midfield, and Centerpoint. Although, I hear Centerpoint is getting saturated.

@Jonathan Hulen I’m not sure to your question but if you read my new book “how to invest in real estate with lots of money and zero debt” you’ll find the answer.

If that doesn’t help, I can give you the seminar training method for only 50k! What a steal.

Joking aside, if Birmingham is similar to Memphis (where I own) cost wise and as a market as a whole, you probably are looking at 20-30k rehab. That number seems pretty standard for a 3 br 2 bath 1100-1400 square foot house. The acquisition and ARV could vary a lot

I’ve recycled $50,000 - $55,000 into three different BRRRR properties in the last year and a half. It is definitely possible, however mine have all been off market deals which made it possible.

Agree with @Jamie O'Brien . It can be done with 50-55K, it'll take some work to find the house but they're out there from time to time. Centerpoint might be a little tough at that price, but you can do it in Eastlake, but be careful as it's street by street there, even block by block in places. And don't use Zillow's ARV, of course. Make sure you vet the location and ARV through some local agents and investors.