Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
Hello BP! I'm looking to get into multi-families (2-4 units) and would love to use the BRRRR (Buy Rehab Rent Refinance Repeat) method in order to finance future acquisitions. I'm looking into the Milwaukee, WI, Cleveland, OH, Southern Suburbs of Chicago and Memphis, TN and possibly Detroit. Are any of these areas good for this strategy? Would love to hear from those that are doing it in those markets or can provide some expertise. Thank you BP!
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Account Closed cash flow is what brings me there and biggest challenge are the late rents. Presently I don't have anyone behind in rent but then again many of my tenants recently received there income tax checks. November - January are tough months to get rent on time. Not sure if it's the holidays that do it, but I'm working with a tenant class that would prefer to buy a large screen t.v. before property budgeting and paying all of their bills on time. Go figure.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
9y
@Account Closed have you thought about moving? Seriousley. People move for jobs all the time. I have been BRRRing since 2010 and I could not have done it remotley - without being on the jobs all the time - at least once a day. I used to buy 30 minutes away from my house, now I focus on areas no more than 15 minutes from where I live and work. The idea of running a serious rehab across state lines seems insane to me. @Shawn Ackerman - respect, I don't know how you do it! I work with several out of State investors and investing can be done, but you want to try to keep it passive. Especially if you happen to have a job as well - not to mention and a life. Also keep in mind, you are probably planning on more than one property - maybe 5, 10, 50? - to run it like a business. it does not pay to have one or two. You need scale. That also means that you multiply the issues which are already amplified by the distance. Did I mention moving yet?
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Marcus Auerbach Thanks for the feedback. However my rental portfolio is on auto pilot and I never have to be in Milwaukee to do anything. I have great systems in place that run like clockwork. Thanks again for you input.
Property Manager · Cleveland, OH · Member since 2016 · 260 posts · 162 votes
9y
@Account Closed Prices start around $50k for distressed homes, starting around $75k you might find some move in ready properties. The prices are a little higher than some of the surrounding areas but the tenants tend to be stable leading to a better long term return.
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Shawn Ackerman when you put your systems in place did you do so before or after you built your team... I am sure there was some trial and error along the way.
@David Terbeek Not really looking for move in ready. Looking for those that need cosmetic rehab in order to use the BRRRR strategy to purchase more properties. Thank you for your input.
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
9y
@Account Closed Memphis can be a tough market to find good buys in the multifamily market. The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.
By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.
Investor · Milwaukee, WI · Member since 2017 · 1 post · 2 votes
9y
I currently live on the South Side of Chicago in Hyde Park and Owner Occupy a 3 flat. I'm currently fixing up the last unit, and will hopefully have low expenses in the near future.
I use short term rentals for one unit, and have a very reliable long term tenant in the other unit. There are some really interesting things happening just south of me in Woodlawn. It is undervalued but has some pillars that make it slightly more attractive including the University of Chicago, proximity to Lake Michigan, the Obama Presidential Library, a proposed Tiger Woods designed golf course, and increasing retail outlets. I'm looking to get into a 4-12 unit complex within the next 6 mos. My job is taking me north to Milwaukee and I am looking to buy a duplex up to a 4 flat and house hack that opportunity as well. I haven't had to pay rent in 5 years and have found the house hacking strategy to work for me while allowing me to save cash for future opportunities. If you have any questions about the south side or Milwaukee please let me know. I've been commuting up there 3 days a week and the nature of my business has me familiar with most areas of town.
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@James Wachob Thank you so much. I received your colleague request and just now saw this post. Are you a turnkey business? Perhaps we can talk through messaging...
@Zach Houlahan thank you for your insight. I do not plan of house hacking since I live in California and don't have plans to move out there anytime soon. I will send you a colleague request and perhaps ask you a few more questions since I have an interest out that way.