Investor · Hayden, ID · Member since 2020 · 29 posts · 36 votes
I have an $82k HELOC and wanting to start out of state BRRRR. What are some good markets for this? I was thinking Ohio, Texas, or Florida, but I've been warned that Florida might be too expensive right now. Thanks in advance!!!
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
6y
There are several markets in the midwest where you could do this. The bigger question is, where do you have the connections to complete and manage this of investment?
I just completed a BRRRR on Friday in Omaha where we bought a SFR for $68K, put $5K into it by adding a couple closets, painting and replacing a stove. It rented for $995, it appraised for $100K, and we did an 85% LTV cash out refi.
Investor · Washington, DC · Member since 2017 · 136 posts · 59 votes
6y
I've had my recent success in Roanoke, VA... which isnt on your list, but it is working for me. Lots of inventory at the $50-80k range for sale on the courthouse steps. Typical Tax Assessed value around $100k and ARV upwards of $120k.
Investor · Idaho Falls, ID · Member since 2016 · 935 posts · 629 votes
6y
Great thread with lots of advice. I too am planning to do my first BRRRR this year around that range $80-100k. So lots of great ideas of different markets, some I've already been researching and some new ones. I too will look within my own state but I am not fearful of doing out of state either. I already have some out of state rentals and following David Green's advice in his books, as long as you have a good team in place it really doesn't matter where you invest. Unless it is within walking distance I probably won't drive several hours on a regular basis to checkup on a rehab anyway, whereas long distance I can request pictures and video to show the progress. Best of luck to everyone starting their BRRRR journey.
@Owen Dashner have you ever started to do a BRRRR, and once completing the rehab found it was more difficult to rent than intended and you decided to sell? (Still making a decent profit, so essentially became a fix and flip). Do you NOT refinance if you decide you want to sell at the end of the rehab and just stay with the hard money lender you used to purchase the property in the first place?
....I have house I'm looking at and it would be a great flip I believe (I'm new), but I've never done a BRRRR and am a little nervous if it didn't rent like I had hoped.
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Jordan Rhoads BRRRR works in literally any market on the planet, you just have to find a good deal, add value be all in for 75% of the ARV. If you can't find a BRRRR deal in your market you're probably not looking at enough deals or making enough offers. People BRRRR with 2 cap rate properties in NYC. Cash flow on the other hand is a different story, but if you can create equity and have any cash flow that's a win in my book. But just remember as well, even on a more expensive property, if you create 50k of equity in a more expensive property, that equity can eventually be 1031d into multifamily down the road that will give you a better return on that equity
Fort Washington, MD · Member since 2016 · 41 posts · 7 votes
6y
@Jordan Rhoads Baltimore City is a Great Place for BRRR method. I practice it here. Turn key rentals can be purchased b/w $28k-$40k. There are various programs such as VA disabled vets and section 8 that I have used for guaranteed rent. I just found out the city has a program like a transitional housing where they pay $700 per room. Great opportunity. I also do project management for out of state investors flipping in other cities. Contractors can be the worst I just provide a piece of mind.
@Jay Hinrichs, I was hoping to try the BRRRR strategy which doesn't really work in Spokane. And it'll be difficult (not impossible) to find deals in my price point. I may have to partner with someone. But you're right. Flips do work in Spokane. I suppose I could do at least one flip in Spokane before BRRRRing out of state. That would provide good experience and extra capital to BRRRR with out of state. I'll definitely look into that.
If you can do a flip, you can pull off a BRRRR. You just may not be able to recycle 100% of your cash, but thats a challange everywhere!
I am enjoying reading the contributions here. As one who is finding the US market a learning curve daily, I am interested in the thoughts of the experienced BRRRR strategy investors.
I am located in GA and I am hoping to apply this strategy to holding assets in Atlanta. What can one maximally achieve with 100k cash? What strategy should one explore? How do you receive relative loans for new Llc's?
I have a lot more questions but I am sure I will learn a lot from further commentary.
@Jordan Rhoads my husband and I are also looking for markets to do a BRRRR and potential partners to pool our money with to make it happen. If you're interested in partners, we should chat!
Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
6y
@Bill Goodland BRRRR does NOT work in every market. Here in NYC you can find the best deal ever and it would still not cashflow (which defeats the purpose of the BRRRR strategy). You can't do a BRRRR in a market that has really low rent to price ratio like NY or cali.
Investor · Hayden, ID · Member since 2020 · 29 posts · 36 votes
6y
@Susan Howard. 64133, 64138, 64137, 64052, 64055, 64056, 64030 Or pretty much anywhere in Independence, MO. But I'm open to anywhere. No matter where it is I'll get multiple opinions of the neighborhood before putting in an offer.
Lender · Central Florida Markets · Member since 2017 · 137 posts · 135 votes
6y
@Jordan Rhoads Good Luck morning on your new journey in life , I have some properties 30 minutes outside Orlando for 50k . rehab is needed for about 25/30k - all in 75/80k and rents are $1100 all day .
ARV would be 115k
You would be able to BRRR once leases are signed
Message me for more info if you like the Central Florida Markets
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
6y
@Michinori Kaneko just because it's ideal to have the deal cash flow doesn't mean a BRRRR doesn't work in expensive markets. Do you think the REITs that buy NYC real estate that buy under performing assets and reposition them after value add go through all that trouble to lose money? Absolutely not, they just realize that if you see the big picture, like creating massive amounts of equity, that there are more ways to make money other than cash flow. Even a negative cash flow deal can have a great IRR. Probably not for the investor looking to quickly build a portfolio and replace their day job income, but to say it doesn't work in expensive markets is simply not true