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Eric P.
  • New York City, NY
348
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470
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BRRRR ("fix and rent") in Oklahoma City area

Eric P.
  • New York City, NY
Posted

I'm curious if BRRRR ("fix & rent") works in the OKC metro area. Essentially, the ability to have your purchase price + rehab costs <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.

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Ron Harris
  • Investor
  • Oklahoma City, OK
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Ron Harris
  • Investor
  • Oklahoma City, OK
Replied

It's works great here in OKC. I only buy properties that I can "BRRRR", though I've been doing that for years before anyone called it BRRRR, ha ha.

I was sharing with one of my students how I buy properties and like to get all my cash back and he said, "It's like getting a free house!" Whoa! I never thought of it like that. I just wanted my cash out and be into it around $0 with infinite ROI, ha ha. So, think of it "getting a free house!" It works.

Several banks will do it and some will even fund you in full when you have proven yourself.

Private lending is easy...very easy to raise here so that it helps with paying CASH for you to REFI out later.

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