BRRRR ("fix and rent") in Cincinnati area

[Eric P.]

I'm curious if BRRRR ("fix & rent") works in the Cincy metro area. Essentially, the ability to have your purchase price + rehab costs less than 70% of the ARV, so after you rehab you can find tenants & then refinance to get all of your cash back. I'm sure there must be some areas / neighborhoods where this works? Of course, the other requirement is that the rental income is enough to cover your mortgage + expenses on the back-end. So this tends to work best in middle class neighborhoods.

Are there any licensed real estate brokers / agents who can help me find such properties? Not interested in Turnkey btw - I'd rather buy pre-renovation (not post-renovation) to capture the equity myself.

[Jered Sturm]

@Eric P. Yes It can be done. Our company did just that in the Cincinnati market. However doing it from out of state may be difficult. How do you plan to manage the rehab process from out of state? 

Another thing to consider is about 95% of lenders will require a seasoning period. some 6 months some 12 months. This will require you to own the property for 6-12 months before doing the refinance at appraised value. 

But to answer your questions is absolutely can be done. You challenge will be rehab from a far and then management of the rental from a far.