New to BRRRR – Looking to Learn, Connect, and Take Action

[William Miller]

Hey everyone,

Name’s Will. I’m new to all this but have been doing a lot of research and finally decided to jump in. My wife and I are getting into the BRRRR strategy with the goal of building passive income and eventually being financially free. I work full time and we have a couple properties already, but now we’re getting more serious about scaling and doing it right.

Right now we’re in California, but planning to invest out of state. Been looking into areas like Indy, Dayton, Kansas City… anywhere the numbers make sense and there’s good rent demand. I’m planning to pull around 70k in equity from one of our homes here in AZ and use that to get our first BRRRR deal done. The goal is to keep recycling that and build a portfolio that gets us out of the paycheck-to-paycheck cycle.

We’re still new to the process and want to connect with people who’ve done this before. I’m hoping to meet some agents, contractors, property managers, anyone that’s investor friendly and knows the game. I’d love to hear from folks that’ve made mistakes too — anything that can help us avoid learning the hard way.

We’re not trying to get rich quick or anything, just want to build long-term wealth and take care of our family. If you got advice, experience, or even a deal you think fits what we’re looking for, I’m all ears.

 Appreciate you all!!

[Nicholas L.]

@William Miller

just a few reactions and cautions

-BRRRR is not a cash flow strategy, it's an equity strategy. if you do it right you'll have a great, fixed up property, and have forced a bunch of equity - and have no cash flow. now, there's a way to generate cash flow - you sell the property as a flip. but again, BRRRR holds aren't going to generate any cash flow.

-BRRRRs are much more challenging out of state.  i did 1 an hour away from me and it was a huge pain.  how will you find deals and move on them fast enough?  how will you find contractors?  how will you manage the rehab?  

-why not stay local?  i bet you'll tell me the prices are too high.  but, it's not easy in Indianapolis or Dayton either.  other challenges - older properties, inconsistent appraisals and lots of demand there too for the best properties by people who can move faster than you can, plus what i mentioned above.

hope this gives you some things to think about