BRRRR in Texas - Which city makes sense?

Question

Hello, is anyone having great success with the BRRRR method in Texas?  If so, would you share which city and/or areas in Texas?

My wife and I are ready to get started and decided to focus on this one method.  We live in Austin so finding homes to BRRRR that would produce the rental rates needed is really tough.

Thanks for your input and help, cheers!

David Serna · Answer

Hello @Thomas Clinch,

I work full time in the investment Real estate industry and, judging from the track record of my investors, they have been killing it in terms of rental properties near the Military bases here in SA. For example, I was selling a duplex near the base not long ago for 71K, property was renting as is for 1200 USD a month, and there was room to bump on the rents if you decided to get in there and rehab it. This property kills the 1% rule. It actually gets closer to 2% once rehabbed.

We see properties like these all the time in SA. I think, judging from the proximity of your location, and the fact that there is so much appreciation going on right now in this market, SA would be a good choice.

Scott Sutherland · Answer

@Thomas Clinch it was a friend of a friend that wanted to sell as-is. Rent was only $1700 per month so we rented it out for a year and sold it (long term gain) and used the proceeds to buy a duplex that does cash flow.

Scott Sutherland · Answer

We purchased a home in Pflugerville a couple of years ago. Purchased for $180,0000 rehabbed for $12,000. Appraised for $237,000. 75% ltv using delayed financing program.  $178k loan. So we ended up at 92% LTC including rehab

Edwin L. · Answer

@David Serna,  I'm not from SA, so I don't know which areas are near the military bases. Can you share which zip codes or other identifying areas for an OOS investor that's near the military bases?  Thanks for sharing!

Anthony Kwon · Answer

Dallas has been growing well with new headquarters, divisions, and data centers are being built while older corporations are re-leasing or developing on new grounds.

Lots of job growth going on, in return population and economic growth follows.

Areas around universities and the areas surrounding the prominent neighborhoods are great areas. Otherwise, just need to find that motivated seller to create an awesome deal!

Feel free to reach out with any questions or concerns!

Chris Koch · Answer

@Thomas Clinch... I am a current (buy and hold) investor in San Antonio and am looking at starting some BRRRR (never know how many R's to use) investing. My personal POV, outside the larger cities (Dallas, Houston, Austin) is where you are going to find the best BRRRRR deals

Ronald Rohde · Answer

Any city if you research the comps. How much are you willing to spend time and equity?

Thomas Clinch · Answer

@Scott Sutherland Thanks for the hope that it is possible, how did you find this deal and what is the rental rate?

I haven't stopped looking just trying to find an area that may have more potential and opportunity.

BRRRR in Texas - Which city makes sense?

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