New York City, NY · Member since 2016 · 470 posts · 348 votes
I'm curious if BRRRR ("fix & rent") works in the Pittsburgh 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.
Investor · Canonsburg, PA · Member since 2016 · 132 posts · 59 votes
9y
That strategy has been going on for some time in various Pittsburgh neighborhoods. As always, the trick is to buy right, which generally means sourcing leads from someplace other than the MLS.
I suggest you check out the local REIA club - or at least visit them on Facebook if you are not in town. Among other things they have a page just for rehabbing.
The strategy still works, you just have to have your ducks in a row off the bat. Send me a message and I'll provide my contact information. We can talk and see if there is anything to work on together.
I just finished doing pretty much exactly what you are mentioning (without the refinance, because we didn't need it). I do although know some banks that would potentially be willing to help you with the refinance part.