BRRRR Newbie looking for my first investment

Long Island, New York
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BRRRR Newbie looking for my first investment

Gilad Lifshitz
New to Real Estate · NY · Member since 2023 · 5 posts · 6 votes

Hi All,

I'm new to real estate investing - I am looking to dip my feet in the BRRRR waters.

I am currently researching relevant markets to invest in - me and a good friend (who is an experienced GC) are looking to partner and start with a low amount as we are less experienced - we're looking to invest about 100-150K from our own capital (maybe take a small loan on the investment. Also - this includes both purchase price and rehab costs).

Any recommendations on which markets to focus on? 

We were thinking either on Ohio area (seems to be within the budget) or perhaps Atlanta area / SC area (seems a bit over the planned budget)

Any thoughts/suggestions?

TIA,

Gilad

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Tyler Fontaine
Property Manager · Member since 2022 · 196 posts · 125 votes
2y

You most likely would be able to increase your buying power if you use hard money or private capital. $100-150k is a good amount to secure a loan for the purchase/rehab, have reserves, and so on.

Also if you are new to it I think it matters more with who you use as boots on the ground if you're going outside of your market that you know. So definitely look for a good market but be sure you find someone reliable that you trust to run the play with you.

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  • Tyler Fontaine
    Property Manager · Member since 2022 · 196 posts · 125 votes
    2y

    You most likely would be able to increase your buying power if you use hard money or private capital. $100-150k is a good amount to secure a loan for the purchase/rehab, have reserves, and so on.

    Also if you are new to it I think it matters more with who you use as boots on the ground if you're going outside of your market that you know. So definitely look for a good market but be sure you find someone reliable that you trust to run the play with you.

    1Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    2y

    Welcome to BiggerPockets, Gilad! Diving into the BRRRR strategy is an exciting step!

    Your plan to partner with an experienced GC sounds like a smart move for navigating this new territory. Members here might have great insights on market trends and potential hotspots.

    -Julio



    561-253-6640
    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Hey Gilad, 

    I find plenty of BRRRR deals here in Columbus. For OOS investing you will need to have some form of boots on the ground.

    Would be happy to connect!  

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
    WebsiteView Page
    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Gilad, Detroit definitely fits with your criteria.

    I own 12-doors there myself and stay extremely active in the market. There's a lot of potential to do BRRRR's and still often have cash flow when done.

    If you haven't put it on your radar yet you definitely should!

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    Yes, what about Detroit?

    New Detroit Developments to Be Excited About

    https://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/32735392

    Logical Property Management4.9446 Reviews
    WebsiteView Page
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Gilad Lifshitz:

    Hi All,

    I'm new to real estate investing - I am looking to dip my feet in the BRRRR waters.

    I am currently researching relevant markets to invest in - me and a good friend (who is an experienced GC) are looking to partner and start with a low amount as we are less experienced - we're looking to invest about 100-150K from our own capital (maybe take a small loan on the investment. Also - this includes both purchase price and rehab costs).

    Any recommendations on which markets to focus on? 

    We were thinking either on Ohio area (seems to be within the budget) or perhaps Atlanta area / SC area (seems a bit over the planned budget)

    Any thoughts/suggestions?

    TIA,

    Gilad

    Hey Gilad, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
  • Gilad Lifshitz
    OP
    New to Real Estate · NY · Member since 2023 · 5 posts · 6 votes
    2y

    Thanks @Jimmy Lieu. I appreciate it!

    I'll definitely reach out if it becomes relevant.

    0Reply
  • Alex Bock
    Investor · Davenport, IA · Member since 2016 · 121 posts · 45 votes
    2y

    It's definitely doable! I have had success with the BRRRR method in the Quad Cities using a similar amount of capital. I like the Iowa side of the Mississippi river in particular because of their landlord friendly laws and lower property taxes. No matter where you end up, make sure you have a trustworthy property manager with clear expectations. Good luck!

    0Reply
  • Josh Bowser
    Real Estate Agent · Atlanta, GA · Member since 2020 · 414 posts · 233 votes
    2y

    Hey Gilad - 100-150k unlevered might be enough in Atlanta if you're willing to go to the C areas and BRRRR townhomes.

    If you're open to using hard money - then your options are a lot broader. You'd be able to BRRRR anything under $350k ARV while still keeping some cash on hand.

    On market BRRRR deals are hard to find in Atlanta right now.

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Gilad Lifshitz What other Midwest city has as much investment planned as Detroit, yet offers such affordable real estate investments?

    https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/

    Logical Property Management4.9446 Reviews
    WebsiteView Page
    0Reply
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