Out of state investor...

[Glenn Jubildo]

Go or no go. I live in California, the investment property I am looking to buy is in indiana. Currently, the distressed property is listed for $25k. I have one bid for $40k to do a complete gut job. Arv is $75k per the contractor in the area. I want to partner up with someone in the area but no luck so far. I am not a seasoned investor but I have the capital to proceed with this purchase. I am hesitant to move forward since I don't have a team in indiana I count rely on at this time. I will have 2 more bids soon. I would like to know what you all think.

[Jack Inman]

@Glenn Jubildo I would be hesitant to rely heavily on the contractor's estimate of ARV. I'd recommend running comps yourself, and/or contacting some local Realtors to get their advice on ARV as well. Having a good team is important as well. Try contacting a local property management company to see if they could offer the services you need for a successful BRRR.

At a minimum, you'll need a Realtor, a closing agent, a property manager with leasing dept, and a contractor. If the property manager can oversee the renovation, then that would be very beneficial to you. As a rule of thumb, the bigger the renovation, the bigger the risk, and a full gut sounds like a big renovation. Make sure you do your homework on the front end. BRRR is a great strategy, but it requires a good team to complete successfully.