Buy and hold BRRRR in a small town

Buy and hold BRRRR in a small town

Charlotte, NC · Member since 2019 · 21 posts · 33 votes

I found a property in a small town with a for sale sign tacked to it. The owners started remodeling but never finished. The owner told me that they were sidetracked by other, bigger projects... This is 2/1 mill hill house. There are no windows, no interior walls and new roof and wiring. They are asking 10k for the place (I'm thinking 5 - 8k). It needs 20 - 30K put into it. It could sale for 67K but cash flow 300 - 400 as a rental. (People in this town rent and stay... FOREVER.) This is obviously not a huge deal but is this a could opportunity?

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  • Warner Robins, GA · Member since 2016 · 244 posts · 167 votes
    6y

    It depends on your goals. A terrible deal for one person could be a great deal for another. First I would say consider the fundamentals - what is that market doing? what do future rent growths/prospects look like? A lot of time in small towns, they may not match the numbers you see in urban areas (which is why they are small towns). That doesn't mean its not a good investment, but I would beware if the area is digressing. Pay attention to schools, and make sure people are not leaving the area. Also, consider what the job market looks like. 

  • Charlotte, NC · Member since 2019 · 21 posts · 33 votes
    6y

    Thank you. This particular town has a few manufacturing companies and Freightliner just built a second facility. Its near the center of town, behind the county office and a seven minute walk to the school in the neighborhood. On of the guys at the county office informed that the city was going to be investing in this neighbor by adding parks and cleaning it up. There have been a few house remodeled already, too. My goal is building wealth by holding. 

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