How to find a BRRRR deal in Texas?

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How to find a BRRRR deal in Texas?

Steven Natera
Austin, TX · Member since 2017 · 17 posts · 8 votes

Hey there! I'm looking to do my first BRRRR in Texas but I'm sure how to get started to find the right deal. I'm live/own in Austin which is a super competitive market to find a brrrr deal. I've started looking along the I-35 corridor for a potential deal using the MLS but there aren't many vacant properties at a reasonable discount that would result in at least a break-even brrrr. Though to be fair I haven't made an offer even it is low ball.

Now I'm thinking about going off-market but I don't even know how to begin finding off market deals. To start I want to buy SFR properties with ARV in the ~200-220k, working backwards that means I'll need to find the properties with an all-in price of 150k.

What's an area in Texas that will allow me to do a BRRRR where I can at least break even?
If off-market is the only way, how would you get started searching for off-market deals?

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Ethan G.
Attorney · Katy, TX · Member since 2014 · 397 posts · 215 votes
4y
Have you looked at tertiary markets.

Originally posted by @Steven Natera:

Hey there! I'm looking to do my first BRRRR in Texas but I'm sure how to get started to find the right deal. I'm live/own in Austin which is a super competitive market to find a brrrr deal. I've started looking along the I-35 corridor for a potential deal using the MLS but there aren't many vacant properties at a reasonable discount that would result in at least a break-even brrrr. Though to be fair I haven't made an offer even it is low ball.

Now I'm thinking about going off-market but I don't even know how to begin finding off market deals. To start I want to buy SFR properties with ARV in the ~200-220k, working backwards that means I'll need to find the properties with an all-in price of 150k.

What's an area in Texas that will allow me to do a BRRRR where I can at least break even?
If off-market is the only way, how would you get started searching for off-market deals?

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  • Ethan G.
    Attorney · Katy, TX · Member since 2014 · 397 posts · 215 votes
    4y
    Have you looked at tertiary markets.

    Originally posted by @Steven Natera:

    Hey there! I'm looking to do my first BRRRR in Texas but I'm sure how to get started to find the right deal. I'm live/own in Austin which is a super competitive market to find a brrrr deal. I've started looking along the I-35 corridor for a potential deal using the MLS but there aren't many vacant properties at a reasonable discount that would result in at least a break-even brrrr. Though to be fair I haven't made an offer even it is low ball.

    Now I'm thinking about going off-market but I don't even know how to begin finding off market deals. To start I want to buy SFR properties with ARV in the ~200-220k, working backwards that means I'll need to find the properties with an all-in price of 150k.

    What's an area in Texas that will allow me to do a BRRRR where I can at least break even?
    If off-market is the only way, how would you get started searching for off-market deals?

    4Reply
  • Steven Natera
    OP
    Austin, TX · Member since 2017 · 17 posts · 8 votes
    4y

    @Ethan G. what would you consider tertiary markets here in Texas? Population size? Radius from a large city?

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    @Steven Natera where have you looked around Austin so far and what types of projects have you done in the past?

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
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    0Reply
  • Steven Natera
    OP
    Austin, TX · Member since 2017 · 17 posts · 8 votes
    4y
    Originally posted by @Jordan Moorhead:

    @Steven Natera where have you looked around Austin so far and what types of projects have you done in the past?

    All over, from Buda to Round Rock. Even in my local neighborhood in South Austin. 

    No projects of my own. I've help with some BRRRR projects in Austin and San Antonio with my buddy. No equity, just helping my friend to learn more. Now I'm looking to do my own.

    0Reply
  • Andy WebbPro Member
    Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
    4y

    Start in and around San Antonio and connect with some of the wholesalers down there.  I see good numbers for BRRRRs out of San Antonio.

    2Reply
  • Tyler Grein
    Investor · New Waverly, TX · Member since 2020 · 2 posts · 2 votes
    4y

    @Steven Natera I currently live in Buda and I'm having the same difficulties finding deals around the Austin area. I've started looking further north toward Temple, Killeen, and Waco since the price point is a little lower. I agree with @Andy Webb that San Antonio is a good option as well.

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    @Steven Natera have you looked into househacking to get started with a low down payment? You could also BRRRR at the same time with other funds.

    What are your goals with BRRRR? Cashflow or appreciation?

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    1Reply
  • Steven Natera
    OP
    Austin, TX · Member since 2017 · 17 posts · 8 votes
    4y
    Originally posted by @Jordan Moorhead:

    @Steven Natera have you looked into househacking to get started with a low down payment? You could also BRRRR at the same time with other funds.

    What are your goals with BRRRR? Cashflow or appreciation?

    I want to break even on cashflow at least but I'm mostly in it for the appreciation on the refinance. 

    2Reply
  • Steven Natera
    OP
    Austin, TX · Member since 2017 · 17 posts · 8 votes
    4y
    Originally posted by @Andy Webb:

    Start in and around San Antonio and connect with some of the wholesalers down there.  I see good numbers for BRRRRs out of San Antonio.

    I like that idea. Any recommendations for wholesalers? 

    0Reply
  • Rick Reeder
    Member since 2019 · 124 posts · 95 votes
    4y

    @Steven Natera I've helped a couple of investors find SFH in Killeen that cash flow, but you won't see the appreciation numbers like you do around Austin. So, if cash flow is your goal, that's one option. I've heard good things about San Antonio on here as well, but have no direct experience. Good luck!

    1Reply
  • Joe Gonzalez
    Wholesaler · Houston, TX · Member since 2017 · 264 posts · 212 votes
    4y

    Hey Steven,

    The key here is to build a marketing machine that pumps leads into your business, you would essentially do what a wholesaler does but with holding being the main exit strategy (instead of wholesaling).

    Pick 1-2 marketing channels and stick with it:

    • Direct Mail
    • Cold Calling
    • Pay Per Click / SEO
    • TV/Radio
    • SMS
    • Bandit Signs

    These are some of the marketing channels I've used to wholesale & find my BRRRR deals.

    Best of luck.

      2Reply
    • Steven Natera
      OP
      Austin, TX · Member since 2017 · 17 posts · 8 votes
      4y
      Originally posted by @Rick Reeder:

      @Steven Natera I've helped a couple of investors find SFH in Killeen that cash flow, but you won't see the appreciation numbers like you do around Austin. So, if cash flow is your goal, that's one option. I've heard good things about San Antonio on here as well, but have no direct experience. Good luck!

       I haven't researched Killeen much. I will look more closely. Thank you Rick for the bit of information!

      0Reply
    • Steven Natera
      OP
      Austin, TX · Member since 2017 · 17 posts · 8 votes
      4y
      Originally posted by @Joe Gonzalez:

      Hey Steven,

      The key here is to build a marketing machine that pumps leads into your business, you would essentially do what a wholesaler does but with holding being the main exit strategy (instead of wholesaling).

      Pick 1-2 marketing channels and stick with it:

      • Direct Mail
      • Cold Calling
      • Pay Per Click / SEO
      • TV/Radio
      • SMS
      • Bandit Signs

      These are some of the marketing channels I've used to wholesale & find my BRRRR deals.

      Best of luck.



        Thank you for sharing these marketing channels! I've been using Propstream to generate lists of potential properties to target for an off-market deal. What other tools should I be using? Would Propstream be enough for getting started?

        0Reply
      • Ronald RohdePro Member
        Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
        4y

        I think you got great advice, if you don't want to be a wholesaler, probably doesn't make sense to completely commit to the off market marketing. its a lot of time and energy for 1 property.

        0Reply
      • Lindsey Hughey
        Texarkana, TX · Member since 2017 · 57 posts · 34 votes
        4y

        Killeen is a good spot, if you are pounding the pavement you can find some deals.  Some body got transferred to a different base or got in trouble and need to sell quickly for some cash.  You need to get off I-35 and start heading East.

        0Reply
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