Things to know when doing your first BRRR in the DMV

[Sidney Alexandre]

Hello BP!

My wife and I are have been saving for a while and have decided to jump into the real estate market in the DMV. We are looking to be long term investors and for that reason we want to start building our portfolio through leveraging the BRRR method. Do you have suggestions on things to think about before we start this journey?

[Russell Brazil]

Quote from @Sidney Alexandre:

@Russell Brazil What makes you say it's impossible to do the BRRR strategy in other places. I'm curious to hear more.

Because the margin between a non-rehabbed house and ARV is too small.

Lets take East Rockville as an example. Nonrehabbed house $475k, needs $100k in rehab with an ARV of $550k. You actually lose money rehabbing in that neighborhood.