I've run the numbers to BRRRR in the Weber and Davis County area, and in most cases, the biggest key to making it work is to BUY LOW. If you don't buy low, it can't work. I think the key is to buy off market deals and get really good deals on them. I'd love to know if there is anyone finding success with this strategy in Utah.
I've run the numbers to BRRRR in the Weber and Davis County area, and in most cases, the biggest key to making it work is to BUY LOW. If you don't buy low, it can't work. I think the key is to buy off market deals and get really good deals on them. I'd love to know if there is anyone finding success with this strategy in Utah.
It seems pretty hard to do unless you have some sort of effective marketing strategy to find cheap property...i havent seen anything priced to buy for a while.
I'm starting my BRRRR in North Ogden. Older, smaller homes in commuting distance to the university. In the middle of my first deal, I'll let you know how it goes.
I found a deal in Ogden. I paid cash through an equity line 2 weeks ago at $161,000. It will need about $25,000 which is a little fix up, paint, carpet, and a whole new yard (this is the biggest expense). I'm going to refinance before the yard goes in and be in it under $170,000 and it should appraise around at $200,000 or more. I'll let you all know how that goes.
@Doug Cary Hi Doug! Yes please do. I’m from the area and go back often. Would like to invest in the area if there’s opportunity. Let me know how it goes! Thanks!
Anyone connected with a good wholesaler in the area. My biggest apprehension is crime, not knowing the neighborhoods really well Ogden is the type of town you don't want to make a wrong turn in - figuratively and sometimes otherwise! One renter even using Meth in your property can cost Thousands in mitigation and set you back on cashflow.
All the good below market properties I'm seeing are in the bad neighborhoods.
I don’t @JB Cunningham ! However Ogden use to always have this reputation. Still does, however they’ve done a pretty good job the last decade with pushing out the bad areas. There are still some but not as much as before. I went to Weber State University in Ogden for a few years and back then it was pretty bad. Going now it’s night and day. If I network with Wholesalers in the area I’ll definitely let you know!
I did a modified BRRR with one in North Ogden last year. I bought from an investor friend who wanted a headache gone (with the tenant) so he sold it to me for about 15% below market value (via all inclusive trust deed). Then I refi'd at the appraised value with a lender who doesn't require seasoning on title, and it ended up being only $5k or so out of pocket.
I had a client that bought a home in North Ogden in July for 192k, put 11k into the house, and sold for 255k in March. Could have done a BBBR, but it was hard to find renters at a price that cash flowed. Was a better flip candidate.
One of those R's is rent. What are you getting for rent in a $200K+ property? I find that to be the problem. Even if I can force the equity, I don't gain much cash-flow by buying distressed properties in this price range with the BRRR strategy.
I do these in Ogden whenever possible and have a few of them. It's very very very hard to find properties that work in a way which allow you to get all your cash back. You still see a tiny percentage from wholesalers that come close. But it's slim pickings indeed.
In 2018 I sold 2 SFRs in SLC and used the proceeds to do a 1031 exchange into 5 MF properties in Ogden. I went to Ogden since even in 2018 it was almost impossible to find a deal in SLC that cash flowed. The properties I bought in Ogden were all older and needed work, some more than others. This was before I started following Bigger Pockets and certainly before I heard about BRRRR. With all the work I had to do on the properties I didn't cash flow until earlier this year, about 1.5 years after buying the properties. They're cash flowing now but since I almost bit off more than I could chew I'm going to catch my breath and enjoy the positive cash flow before I jump into other properties. I've been keeping an eye on investment properties in Ogden and it seems that purchase prices have gone up quite a bit, to the point where it would be difficult to find a deal that cash flows (even without a lot of repair expenses.) I'm thinking I'll need to find other areas to invest.