Updated 15 days ago on . Most recent reply
First time investor Looking for Tips
First time investor looking for tips and guides on mastering the BRRRR method. Things that will help me and things to be cautious of. Where to find my "Core Four" and just getting started in general. My knowledge of this method is entirely from David Greene's book "BRRRR" so far so I reference this book but am looking for community experience and advice on my first steps to translating my research to reality!
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#3 All Forums Contributor
Welcome Mitchell. Good choice starting with Greene's book, it lays out the framework well. But I'll tell you what the book doesn't emphasize enough... the rehab budget is where BRRRR deals live or die.
A few things I'd focus on early:
On finding your Core Four in Texas:
Your contractor is the hardest one to lock down and the most important. Don't just get one. Get three. Because the first one will ghost you mid-project, guaranteed. Ask other local investors who they use, not who they recommend ... there's a difference. Go to your local REI meetup and listen to who people are actually closing deals with.
For your agent, you want someone who understands investor math, not just someone who sells houses. If they can't tell you what a property will ARV at without pulling comps, keep looking. A lot of agents will waste your time showing you retail deals that don't pencil out.
On the actual BRRRR process:
The refinance is the part most new investors miscalculate. Talk to your lender BEFORE you buy your first deal and understand their seasoning
requirements. Some want 6 months, some want 12. That matters because you're carrying hard money or private money during that entire period, and those payments add up fast.
Also, your rehab scope needs to be dialed in tight. Over-improving kills your returns. You're not flipping this thing -- you're renting it. The finishes need to be durable and tenant-proof, not Instagram-worthy. LVP flooring, solid paint, functional kitchens. That's it.
Biggest mistake I see new BRRRR investors make:
They buy based on what the deal COULD be instead of what the numbers say right now. Run your numbers assuming 8-10% vacancy, actual insurance quotes (not estimates), and real property tax assessments post-rehab. If the deal still works with conservative numbers, you've got something.
Texas is a solid market for this strategy, especially in the secondary cities. What part of Texas are you looking in?