BRRRR Cities in 2020

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BRRRR Cities in 2020

Rudy Manna
Investor · Redmond, WA · Member since 2016 · 267 posts · 110 votes

What are the best cities for doing BRRRR in 2020? We did in Seattle, Tacoma and Durham, NC - but now price points are somewhat higher to make it work in those areas.


What Cities are you focusing now? Especially where you can make the model work with somewhat lipstick renovation, $15/$20 per sqft - without getting into the gut-out domain.

@Pradeep Tiwari

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Michael HaasBusiness Member
Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
6y

@Rudy Manna - we've been BRRRRing in Seattle as well, but its still working out well enough that we're not looking out of state just yet.

I'd say focus wherever you have real estate and contractor connections, family, friends, or neighborhood familiarity. I'd try to minimize risk as well when going out of state, rather than just maximizing return. It would be a shame to chase ROI into an area where you get screwed by your agent and buy in the wrong neighborhood, get screwed by your contractor on the renovation, and get screwed by your property manager on the tenant management and maintenance.

Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." - Warren Buffet

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  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    6y

    @Rudy Manna - we've been BRRRRing in Seattle as well, but its still working out well enough that we're not looking out of state just yet.

    I'd say focus wherever you have real estate and contractor connections, family, friends, or neighborhood familiarity. I'd try to minimize risk as well when going out of state, rather than just maximizing return. It would be a shame to chase ROI into an area where you get screwed by your agent and buy in the wrong neighborhood, get screwed by your contractor on the renovation, and get screwed by your property manager on the tenant management and maintenance.

    Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." - Warren Buffet

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    5Reply
  • Aaron NelsonBusiness Member
    Real Estate Agent · Seattle, WA · Member since 2016 · 307 posts · 191 votes
    6y

    Just helped a couple of investors find BRRRR properties in Tacoma earlier this year. Think they had like $30K left in the deal after all was said and done (roughly a third of what they would have had if they purchased normally).

    Still think there are opportunities in the market, but it depends on what you're looking for. 

    [email protected]425-880-2580
    White Coat Realty534 Reviews
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  • Rudy Manna
    OP
    Investor · Redmond, WA · Member since 2016 · 267 posts · 110 votes
    6y
    Originally posted by @Aaron Nelson:

    Just helped a couple of investors find BRRRR properties in Tacoma earlier this year. Think they had like $30K left in the deal after all was said and done (roughly a third of what they would have had if they purchased normally).

    Still think there are opportunities in the market, but it depends on what you're looking for. 

    Good to know that BRRRR is still working..how is the rental cash flow? Did they achieve cash flow neutral after Property management & maintenance?

    1Reply
  • Michael MagnoBusiness Member
    Real Estate Agent · Wadsworth, OH · Member since 2017 · 234 posts · 168 votes
    6y

    @Rudy Manna

    Cleveland Ohio!

    2Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @Rudy Manna:

    What are the best cities for doing BRRRR in 2020? We did in Seattle, Tacoma and Durham, NC - but now price points are somewhat higher to make it work in those areas.


    What Cities are you focusing now? Especially where you can make the model work with somewhat lipstick renovation, $15/$20 per sqft - without getting into the gut-out domain.

    @Pradeep Tiwari

     The suburbs of Cleveland can be a great place. 

    0Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    6y

    Redmond, Washington. 

    What's wrong with your market? Deals are out there just have to find them.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Rudy Manna:

    What are the best cities for doing BRRRR in 2020? We did in Seattle, Tacoma and Durham, NC - but now price points are somewhat higher to make it work in those areas.


    What Cities are you focusing now? Especially where you can make the model work with somewhat lipstick renovation, $15/$20 per sqft - without getting into the gut-out domain.

    @Pradeep Tiwari

    Doing a BRRRR has nothing to do with location. It's about your skill set. In a nutshell the skills needed to be good at doing BRRRR deals are as follows

    • The ability to market to distressed sellers.
    • The ability to sell the sellers on closing a deal with you.
    • The ability to accurately estimate repair scope and cost.
    • The ability to manage a construction crew and come in on time as well as within the budget.
    • The ability to accurately estimate the eventual resale vale of the property.
    0Reply
  • Brian Hansen
    Member since 2020 · 13 posts · 2 votes
    5y

    Bumping this thread since I am a first time investor and want to execute a BRRRR as well. I have $75K in cash available and am researching where that can create return for subsequent purchases. Thanks for any insight!

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