Rental Property Investor · Effingham, IL · Member since 2019 · 5 posts · 3 votes
Hey everyone - I'm relatively new to the real estate game, but have done 1 flip and working on another BRRR right now in my local market (Central IL - Effingham). My question to the group focuses around investing out of market: does it make sense to get a few under my belt before going into other areas? Get familiar w/ the BRRR strategy, being a landlord, etc.. Or does that not really have any impact?
Being in Illinois, the Indy/Evansville markets seem intriguing and are relatively short trips where I can do some site analysis and physically visit potential locations. My reservations are the things I mentioned above and not having a real understanding (yet) of those "target" markets.
Any insight is appreciated and welcome any investors in those areas (Indy/Evansville) that would be interested in talking to let me know!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
@Matt Koester It depends on your goals and location, but generally the more you know and can control the better off you are. It is hard to control a renovation from a distance it will usually cost you extra time and more money. So having properties 20 minutes away is a definite plus.
I have had properties a thousand miles away-worked ok most of the time-today my rentals are within an hour's drive and I like having it that way. All the best!
Rental Property Investor · Effingham, IL · Member since 2019 · 5 posts · 3 votes
6y
@Bjorn Ahlblad - Thanks for the input. Agree with you that its much easier investing and doing a BRRRR in an area I'm comfortable with and have existing connections. The area I live in is a more rural area with not a whole lot of deals/opportunities presenting themselves on a monthly basis. I'm within a 1-2 hr drive of St Louis, Indy, Evansville, and Champaign (IL) and have seen many posts about investing in Midwest which makes me think that I should look into these more closely.
Thanks again! Looking forward and excited for this new journey into the real estate investing world.
Investor · Alameda, CA · Member since 2016 · 132 posts · 170 votes
6y
Congrats on the early successes, @Matt Koester. A smart former mentor of mine had a great way of adding “new” steps into an established business (or system): only add one key elements of new-ness in at one time into the system.
In this case: if it's your first time BRRRR-ing and you're still in the middle of it. Maybe wait until you wrap it up and learn from it to apply those learnings in a new market.
That said, if you’re feeling confident in your systems and processes. Go for it!
Disclaimer: i'm not a BRRRR guy. work on commercial value-add deals, but know a handful of BRRRR-ers personally who manage their entire processes across the country. They're hardcore system thinkers and it helps them manage business from afar.