Best cities for BRRRR

5 Replies

Curious what people think are the best cities for the BRRRR strategy right now. I figured this was maybe discussed recently, but I searched and can't find any posts related to this.

Also, if you're currently implementing BRRRR somewhere, kindly state what class of location you're operating in. Personally I like to BRRRR in B/B-/C+ areas, where you can generate good returns without needing too much capital, but the location isn't too scary.

@Eric P.

Here is the market report from BP

Find the B/C+ areas in these cities, double check the numbers and you should be fine. 

Top 10 Cities Offering the Most Opportunity for Real Estate Investors, 2016

  1. Dallas, TX
  2. Portland, OR
  3. Denver, CO
  4. Miami, FL
  5. Tampa, FL
  6. Seattle, WA
  7. Nashville, TN
  8. Atlanta, GA
  9. Houston, TX
  10. Austin, TX

Any Midwest type market could work for this strategy bc of the lower price points. This is not a technique that you see anyone doing unless its the person buying meaning I dont know if any property providers offering this up anywhere.  This was a strategy that was very popular back in 2007-2009 as this is what our business model was, sadly not anymore. 

Good luck

@Eric P. Hi Eric, I'm currently implementing the BRRR strategy on a property just north of Fort Worth, TX. I'ts in a B-C area. I've completed the rehab, in the process of refinancing and renting out. It was my first attempt at the BRRR strategy. Can't emphasize enough the importance of knowing your numbers especially when it comes to this strategy. First step should be to solidify your understanding of the numbers and analyze many deals to get a feel for the different factors that can make or break a BRRR deal.

Thanks @Stephen Quesinberry - I'm curious which numbers tripped you up the most. Was it the projected ARV, the projected rents, projected rehab costs, or the monthly expenses?

@Eric P. I have BRRRR on my keyword and notice you post up like 30 post with the same topic and description but just changing the location of the city.

The BRRRR is not about swing where it works best because it does work everywhere and it depends on you on how you want to structure.

I'm going to explain this as simple so hopefully my keyword gets a rest from your BRRRR mission finding what area is good.

You want to succeed at BRRRR you would need to calculate what cash flow property you want and equity that's left. From a scale of 1-10, 1 being in the ghetto and 10 being in trump tower, you need to figure out what you will be ok working with. 1 with get you high cash flow but slow appreciation, 10 will get you no cash flow but high appreciation and maybe 7 will get you a small break even with moderate appreciate.

It all depends what you want and not what a city could give you because there BRRRR are all over the USA

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