Best strategy to invest
Hi my name is Jairo Canas, im a new real estate agent and don't know many investors. So my question is What is the best strategy to use to invest in Northern Virginia? Like should i use the BRRRR method or should i do short term rentals, which one? Please help.
Thank you!
Quote from @Jairo Canas:
Hi my name is Jairo Canas, im a new real estate agent and don't know many investors. So my question is What is the best strategy to use to invest in Northern Virginia? Like should i use the BRRRR method or should i do short term rentals, which one? Please help.
Thank you!
My wife and I have a real estate business and we are ramping it. It really depends on your goals.
We started as BRRR even though we nothing about it because family circumstances drove us to it.
Then we acquired a few long terms.a
Then a mid term furnished.
Now we are moving to:
Wholesale - quicker cash out
BRRR - some of our wholesales to be BRRR so we can generate long term income
FLIP - Probably not going to hold all the BRRR if it's not where we have a good system in place to rent.
There are many other ways to make money in real estate. Start with the end in mind and work backwards to figure out how to get there.
#2 Starting Out Contributor
- Investor
- Austin, TX
Take every deal as its own and figure out the highest and best use for the property. One area does not dictate an investment strategy.
Quote from @Eliott Elias:
Take every deal as its own and figure out the highest and best use for the property. One area does not dictate an investment strategy.
How do you figure out the highest and best use fir the property?
Quote from @Jairo Canas:I always start with planning for it being a long term rental. I won't buy a house without comps and I want a discount on the comps around it unless it is just absolutely perfect and turn key like I want it. I don't live in an area where short term rentals are really a big thing, I mean there are some but that doesn't work out. If I went about 1.5 hours north or 45 minutes south then I have a market for short term rentals at least in May-Sept ish.
Quote from @Eliott Elias:
Take every deal as its own and figure out the highest and best use for the property. One area does not dictate an investment strategy.
How do you figure out the highest and best use fir the property?
Anyway, so comp then rehab value, then ARV and I plan ARV and what it will rent for monthly and assume a little occupancy and run the numbers.
But, if I don't have the time to rehab then if I get a good deal and I can net another investor a profit and make a "finders fee" I'll wholesale it.
If I can't do the above (finders fee + another investor profit) then I will just do a flip, but I am not a big fix and flip guy. The taxes are insane, the holding time, etc. the marketing, showing it, the fact that I only make money once, just not my thing. Not that I wouldn't do it, just last choice.
If it is a short term rental I'd probably follow a different strategy. I have an AirBnB/VRBO/Furnished Finder property but its more of a mid-term rental and only because it is near a hospital that employs travelling nurses. So I'm really not the guy to advise what determines short term rental vs long term rental besides the market. I'd say if I was going to hit the Destin area, for instance, I'd only be looking at things I could furnish for STR.
Thank so much for that information, helped a lot!