First BRRRR deal out of state
I'm located in Jacksonville Florida, and I have one property here, one in Virginia, and I have chosen to expand into Huntsville AL.
I went back and forth with a local realtor/property manager for a while, and after I felt he was acting in a professional and trustworthy manner, I checked him out online and here on BP too.
But in that search for people in Huntsville I also came across a wholesaler who also was willing to talk with me for a while on the phone and answer a few questions. I ended up on his buyers list, frankly not expecting too much. I was an out of state buyer, with no track record in the area to prove I can close or that I was willing to close.
Fast forward a few months, and I get the normal email from him with two houses in them. One was a 3/2 1100 sqft that was in an ok looking area based on the research I'd done. Problem was, I'd already committed alot of my own capital to another project. But this was interesting enough to take a little gamble on. I was able to raise some capital from a family member with pretty favorable terms for both of us, 5% interest to be paid at the end of 6 months along with a return of all their money. This enabled me to buy the property with cash, allowed for at 10k of repairs, and make sure all my normal bills would still get paid.
I'm buying the house for a little more than 56k, repairs seem to be around 5k, per the PM the rent in the area should be between 800-850, and online comps seem to be around 70-80k. My plan is to refinance to a normal 30yr mortgage after about 4months so that I got a few months of rent coming in w/no loan to carry which helps out in the beginning.
It's an ok deal overall, but I'll need to do better to hit the numbers required to get to my goal. The point of doing this property is to start to create the local reputation, in hopes of getting higher on the buyers list.