New Investor - Looking for BRRRRs (Anywhere in U.S.A)

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New Investor - Looking for BRRRRs (Anywhere in U.S.A)

Wayne B.
New to Real Estate · Member since 2024 · 19 posts · 35 votes

I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.

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Nadeem Alamgir
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
2y

Hey @Wayne B., welcome to BP! If you're open to out-of-state investing and looking for a BRRRR opportunities, check out Cleveland, OH.

You can find distress off-market opportunities under 100k in B to C areas. I recommend working with an investor-friendly agent to help you figure out the market first before analyzing any deals.
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  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    2y

    BRRRR opportunities can be a great way to build your portfolio and generate passive income. Here are some steps to help you get started:

    1. Educate yourself: Learn as much as you can about real estate investing, including market analysis, property valuation, financing, and property management. There are numerous books, podcasts, and online resources available to help you become a more knowledgeable investor.
    2. Build a team: Assemble a team of professionals to help you with your real estate investments, including a real estate agent, lender, contractor, and property manager. These professionals can provide valuable insights and help you navigate the complexities of real estate investing.
    3. Research the market: Start by researching different markets across the country to identify areas with strong rental demand, affordable property prices, and potential for appreciation. Look for markets with diverse job opportunities, population growth, and a strong local economy.
    4. Financing: Explore your financing options, such as traditional mortgages, home equity loans, or investment property loans. Consult with a mortgage broker or lender to determine the best financing solution for your investment goals and financial situation.
    5. Property selection: Look for properties that have the potential for value-add improvements, such as cosmetic upgrades, energy-efficient upgrades, or additional amenities. These improvements can help you increase rental income and property value.
    6. Network: Connect with other real estate investors in San Francisco and across the country to learn from their experiences and stay informed about market trends. You can join local real estate investment clubs or online forums to expand your network.
    7. Start small: Since you're new to real estate investing, it's a good idea to start with smaller properties under $400K. This will allow you to learn the ropes and minimize your risk as you gain experience.
    8. Monitor your investments: Continuously track your investments' performance, including rental income, expenses, and property value. This will help you make informed decisions about future investments and optimize your portfolio.
    9. Scale your investments: As you gain experience and confidence in real estate investing, consider scaling your investments by purchasing larger properties or expanding into different markets.

    By following these steps and staying disciplined in your approach, you can successfully invest in real estate and build a profitable portfolio as a software engineer.

    1Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    A successful BRRRR without the tailwind of market appreciation during the renovation period is really, really hard unless you have cash to buy a place that does not qualify for conventional financing, ways to source off market deals with some real issues that you don't mind taking on, and/or access to a crew or cheap labor (could be DIY). The best scenario is a combination of all 3 or some other unfair advantage.

    BRRRR is a cute term, but let's call it what it actually is - you're taking on a mess and long list of problems that someone else could not solve. I'm finishing up an out of state project now. While the numbers check out great, it sucked, was stressful, consumed a giant pile of cash (cost about $15k more than we expected), and I asked myself about 38 times why the he!! thought it was a good idea. It's also not my first go at it and is down the street from another property I own. I had a great team in place (other place was a fixer as well) and knew the market really well.

    Real estate is a pretty efficiently priced asset class...the only reason that a seller would sell below ARV with enough of a spread for you to be in it for 75% of said ARV would be if it's a disaster and they have no other options. Even then, there is still a lot of competition for deals. In the event that you can find something off market, there is usually a situation to untangle that I would not recommend a first time, out of state investor take on. And off market does not automatically equal a good deal.

    It can work, but it's a bad idea for a first time out of state investor. You're just stacking risk factors in a tougher, blocking and tackling market. 

    2Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Michael, I was in SF for years but am down on the Central Coast now. 

    I invest primarily in Detroit (12-doors there), but I'm also building an ADU here at my primary.

    You can definitely still do BRRRR deals in Detroit in today's environment but you have to be careful of the team you're working with.

    There's a lot happening in the Detroit market in terms of investment and revitalization. They're currently getting ready for the NFL draft as well. It also has low-entry price points where you can be all-in on a single-family house for under $100k and still cash flow.

    Happy to chat about my experience there or send some resources that might be helpful.

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    @Wayne B.
    I would recommend checking out some markets in the Midwest if you are looking to do BRRRR's like Columbus or Cleveland OH. Definitely doable in that price range.


    [email protected]614-412-4565
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Wayne B.:

    I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.


    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/blog/core-four-real-estate-tea...

    I invest locally in Columbus, Ohio
    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    There are some good BRRRR opportunities in the Midwest for cheap. Markets in Ohio, Cities like Detroit, St. Louis, Memphis, etc.

    0Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    2y

    It's great to have you here, Michael! Especially with your tech background jumping into real estate investing. BRRRR, short-term rentals, and flips all sound like fun options to check out.

    Starting small with units under $400K is wise, and you can grow from there as you learn more.
    -Julio





    561-253-6640
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Wayne B.:

    I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.

    Hi Michael, I'd recommend that you look into Columbus Ohio! I like Columbus Ohio because I see it being one of the biggest metropolitan cities in the next 10-20 years, all signs are pointing here! Population is growing aggressively and jobs are moving here especially with major employers like Intel, Google, Amazon, Nationwide, etc. On top of that, you have one of the biggest and best universities in the world here with Ohio State University. The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here. On top of that, you get great appreciation and very landlord friendly laws. Tons of investors are buying Columbus up! As an investor and agent here, let me know if you have any questions or want to connect

    [email protected]614-300-7535
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  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y

    @Wayne B.

    Definitely recommend investing driving distance to you: 

    https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

    415-233-1796
    1Reply
  • Nadeem Alamgir
    Real Estate Agent · Member since 2023 · 831 posts · 577 votes
    2y

    Hey @Wayne B., welcome to BP! If you're open to out-of-state investing and looking for a BRRRR opportunities, check out Cleveland, OH.

    You can find distress off-market opportunities under 100k in B to C areas. I recommend working with an investor-friendly agent to help you figure out the market first before analyzing any deals.
    4Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
    2y
    Quote from @Wayne B.:

    I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.


    Plenty of BRRRR deals under 400k in Cleveland and Toledo Ohio

    2Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    2y

    @Michael Torku, Memphis has a lot of BRRRR opportunities. I'd love to be your contact for anything REI related.

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

    There are some great opportunities in the Ohio markets. Many investors from California, are choosing to invest in the midwest because of the yearly returns making more sense in these lower priced markets. Ohio markets show up 3 times in Zillow’s 2024 hottest markets, with Columbus and Cincinnati taking the top 2 and 3 spots. I moved from Florida to start investing in Columbus due to the same reason.

    https://www.zillow.com/learn/hottest-housing-markets-2024/

    [email protected]614-662-1652
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  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    2y

    Hi @Wayne B. Welcome to BP!

    I personally BRRRR'd 16 houses in Memphis last year. Im happy to answer any quetions you may have based on my personal expierences.

    Good Luck!

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    2y
    Quote from @Wayne B.:

    I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.

     Michael,

    I would suggest you reach out to local investors there in the SF area and ask to grab a coffee, a beer or a meal.  You essentially have essentially cast a super wide net and are going to get a ton of sales responses, but what I gather from your post that what you really need is a mentor/like minded investor to help hone in on recognizing good deals, narrowing your focus and absolutely protecting your capital.   @Austin Fowler is in your area and even has a group of like-minded investors there in SF and many are in IT/Engineering fields.  It may be a good idea to have some face to face conversations if possible before you spend any money on deals.  Whatever you do, be patient and don't chase!  Good luck to you - 

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  • Austin Fowler
    Investor · Reseda, CA · Member since 2019 · 297 posts · 151 votes
    2y

    Thanks Chris,

    Indeed, we have a decent group of 1100+ people (https://groups.google.com/g/scalable-property-investing). The group is open to all, and totally free. You'll find lots of content there from investing in turn key properties (I have have 15 REI Nation SFRs) to passive multifamily (have a $3M+ stake in 1500+ units) to renewable energy (energea.com). I can connect you with people that can help you with flips, short term rentals, and BRRRR.

    Best,

    Austin.

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    2y

    Welcome to BiggerPockets Michael! I would recommend narrowing your search though. Looking all over the country is just going to be either overwhelming or waste a lot of energy

    Podcast Guest on Show #121
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  • Account Closed
    Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    2y

    Hi, as an Ohio Realtor, I came by to tell you that there are investment opportunities in Ohio. If you have any questions, please feel free to contact me. Thanks!

    Regina Blake-Ohio Realtor

    0Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    2y
    Quote from @Wayne B.:

    I'm a software engineer getting into the world of real estate investing. I'm primarily looking for BRRRR opportunities but I'm open to short term rentals and even flips. I am based in san francisco but pretty open to investing anywhere across the country - as long as it's a good opportunity in a good/profitable area. Would love to connect and invest. Don't have a lot of real estate experience so would like to invest in units under $400K for now and we can scale from there.




    Cleveland, Ohio is a great market to focus on for cash flow and specific pockets have gone up 2x and upwards of 4x in the last 5-10 years even!

    Examples:

    44109 (median home price went from roughly 50k to 125k in 8 years)

    https://www.zillow.com/home-values/77009/cleveland-oh-44109/

    44102 (median home price went from roughly 30k to 120k in 8 years)

    https://www.zillow.com/home-values/77002/cleveland-oh-44102/

    44106 (median home price went from roughly 100k to 200k in 8 years)

    https://www.zillow.com/home-values/77006/cleveland-oh-44106/

    It has the highest rents on average in all of Ohio for major cities and the median income is not even in the top 3. That creates a really nice price / rent ratio which is favorable for investors looking for cash flow. The median home price is also very low nationwide which creates a low barrier to entry. You can get solid cash-flowing single families in the 90-120k price range and duplexes in the 130-180k price range. There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues. In 2022 the rents increased 12.1% year over year which was the 3rd highest in the entire country per https://www.axios.com/local/cleveland/2023/02/14/cleveland-rent-prices.

    Here are pockets I focus on for cash flow:

    West side - West boulevard, Cudell, Clark-Fulton, Jefferson, Bellaire-Puritas, Old Brooklyn

    East side - Fairfax, Buckeye-Shaker (the north side), Waterloo Arts District, Garfield Heights, Maple Heights, Newburgh Heights, Lee-Miles (the north side), Bedford

    Here are the areas that I focus on for appreciation:

    West side - Lakewood, Edgewater, Old Brooklyn, Ohio City, Tremont (above 490)

    East side - Buckeye-Shaker (the north side), Waterloo Arts District, Fairfax

    *I have a graded neighborhood map of these areas as well if you would like to check it out.



    [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
    2Reply
  • Vasudev Kirs
    Member since 2019 · 88 posts · 25 votes
    2y

    Why is everyone pointing to Ohio?

    1Reply
  • Justine Phillipson
    Real Estate Agent · Phoenix, AZ · Member since 2020 · 74 posts · 58 votes
    2y

    Reach out to me if you're interested in the Arizona market. Would love to help you!

    1Reply
  • Account Closed
    Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    2y

    Hi, Ohio is great for investors the real estate market is on fire if you have any question feel free to contact me. Thanks!

    0Reply
  • Shane Dreffs
    Member since 2022 · 57 posts · 24 votes
    2y

    Hi Michael, I am a robotics and automation engineer that has recently jumped into real estate full time, using the BRRRR strategy.

    (But I have been buying and rehabbing properties for the last 15 years)
    I live and invest in Birmingham, AL I would love to discuss with you in more detail. 

    0Reply
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