Hi, I'm looking to make my first move into real estate and I'm thinking I'd like my first deal to be a BRRR property. Although I live in NJ I really like the prices and rents in the Detroit area, so this is definitely going to be a challenge long distance.
Any tips on how I should start.
What zip codes should I look in ?
Areas I should avoid ?
I'd like to invest in SFH rather than MF for now.
Am I taking on too much for my first deal ?
I can't really BRRR in NJ because prices are just crazy right now, so I'm trying to find other markets but I'm just concerned about not living near my property.
The pandemic can make things difficult but I recommend visiting and seeing the neighborhoods for yourself, noting what's going on street by street. Zip codes will not tell you the whole story, the zip code my rental house is in has homes between $30k and $150k. There are several times more single family homes than multi so focusing on that will make things easier.
Hey Marwan, welcome to the community and congrats on making the move into real estate!! I'm in a similar situation (I'm from Seattle) and have been interested in out of state investing. Detroit (and it's neighborhoods: Hazel Park, East English Village, Madison Heights, etc.) has been an area that has also interested me as a potential place to invest. I'm also interested in the BRRRR model, so I've been spending the last month or so studying up on the BRRRR strategy as well as researching some of the Detroit areas identified above. I'm under the impression that BRRRR can work anywhere, but I'm just intrigued with out of state investing currently (I have two 4-plexes in Seattle).
Even though I inherited my 4-plexes, I still consider myself new to “investing”. I’m not familiar how far you’re into your journey, but some things I keep hearing from this community, and I’d recommend for starting out, is continue to educate about the strategy, market you’re interested in, and connect with the different resources of people on these forums. Real Estate is a long term game and there is no need to rush into getting started. Learn how to evaluate deals.
One good resource I’m learning an investor should have is a good property management team from the city you’re looking into. These companies would be the most familiar with the city and have a TON of contacts at their fingertips. Also, they’d be the best way to manage your property (when you eventually get some) if you’re going to be an out of state investor. They can even help you in finding properties that they are aware of that can potentially be your next investment opportunity. I’ve been researching and following a few property management companies that specialize in the Detroit area on here and their websites, and my next step is to reach out to connect with them and ask some questions. Two of the property management companies are: Logical Property Management and KJ Manage (@Keith Jourdan). I also started following some of the Detroit area Forum discussions just so I’m aware of the happenings in the area more from people that are on the ground and investing in that market.
Sorry it’s kind of long winded, but hope this helps and good luck!