BRRRR in Tacoma, WA and surrounding areas

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BRRRR in Tacoma, WA and surrounding areas

Account Closed
Auburn, WA · Member since 2020 · 4 posts · 2 votes

Hi everyone I'm Daniel, I'm 22, and I want to begin my real estate investment career by using the BRRRR strategy. I have never done anything in the field of real estate besides watch youtube videos on real estate and browse Zillow in my free time. I am interested in BRRRRing in the Tacoma market for reasons such as growing--and expected growing of the population, home prices have increased in past years, the expected job growth over the next decade, it is a satellite city of Seattle, and there's probably other reasons I haven't listed. I want to learn the ins and outs of real estate investing and be able to grow my portfolio over the long term. I wont make this too long. I want to make a career out of this, out of doing the BRRRR method and possibly other types of real estate investing down the road. However, I don't really know where to start, which is the main point of my post. I was hoping to see if anyone in the nearby Tacoma, WA area would be willing to give me advice as to how to go about finding a great deal, possibly off market and the process of actually buying it and starting the journey. Thank you everyone who read this post.

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Michael HaasBusiness Member
Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
5y

@Account Closed welcome to BP! You're on the right track - knowledge is power and daily action is essential to success. My wife and I both work in Real Estate full time as investors and agents, and it is a pretty great way to make a living (and then some).

I have a couple questions for you so we can help you better:

1. Do you own your own home?

2. How much cash are you planning or able to invest?

3. Do you have a w-2 job, and how happy are you there?


BRRRRing is an amazing strategy and we're engaged in two of them personally, but it is cash intensive. If you have $150,000 cash to invest, or have a private investor or friend/family member with at $150,000 cash to invest, then by all means BRRRR. If you don't you'll have to rely on hard-money, which is really dangerous for a beginning investors.

For most people just getting started a $100,000+ cash investment isn't an option, which is why HouseHacking is the most effective beginner strategy - you can get a good HouseHack deal under your belt for just $10,000-$30,000 cash in Tacoma, and there are great programs (like the WSHFC downpayment assistance program, and the BofA $17,500 free grant program) that a good agent can guide you towards to get the downpayment on a househack down to between 1% and 6% of the purchase price. 

Happy to talk more - not trying to talk you out of BRRRRing here as we're doing those deals now, but I found it a lot easier to BRRRR after I had 4 HouseHacks and 3 STR / Airbnb rentals under my belt. I think if my first deal was a BRRRR I would have lost my shirt haha.

[email protected]408-439-7873
HouseHack Seattle | Michael Haas & Team572 Reviews
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  • Jeff Strowbridge
    Member since 2021 · 4 posts · 1 vote
    5y

    Daniel, you need to find an investment minded agent. There are many ways to acquire deals. MLS, Off market, Auction. If you want to buy and Hold make sure you have your financing together. Meaning: Cash (hard money) to acquire and renovate and the take out financing.

    1Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 549 posts · 458 votes
    5y

    Like Jeff said. Hard to give much guidance without knowing more specifics on your goals, cash available, skillset, etc. You're already taking the right steps in research and learning. Next progression in the process is to start networking. I've BRRRR'd in Tacoma and know the market very well. Happy to connect. Best wishes in your journey!

    Broker at Multifamily Properties519 Reviews
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    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
    5y

    @Account Closed welcome to BP! You're on the right track - knowledge is power and daily action is essential to success. My wife and I both work in Real Estate full time as investors and agents, and it is a pretty great way to make a living (and then some).

    I have a couple questions for you so we can help you better:

    1. Do you own your own home?

    2. How much cash are you planning or able to invest?

    3. Do you have a w-2 job, and how happy are you there?


    BRRRRing is an amazing strategy and we're engaged in two of them personally, but it is cash intensive. If you have $150,000 cash to invest, or have a private investor or friend/family member with at $150,000 cash to invest, then by all means BRRRR. If you don't you'll have to rely on hard-money, which is really dangerous for a beginning investors.

    For most people just getting started a $100,000+ cash investment isn't an option, which is why HouseHacking is the most effective beginner strategy - you can get a good HouseHack deal under your belt for just $10,000-$30,000 cash in Tacoma, and there are great programs (like the WSHFC downpayment assistance program, and the BofA $17,500 free grant program) that a good agent can guide you towards to get the downpayment on a househack down to between 1% and 6% of the purchase price. 

    Happy to talk more - not trying to talk you out of BRRRRing here as we're doing those deals now, but I found it a lot easier to BRRRR after I had 4 HouseHacks and 3 STR / Airbnb rentals under my belt. I think if my first deal was a BRRRR I would have lost my shirt haha.

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    7Reply
  • Sherief Elbassuoni
    Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
    5y

    @Account Closed above. I did house hacks and do BRRRR and my latest BRRRR has a rehab cost of more than $150K. With this budget, you can do gut work for the house, and force appreciate it to the limit that you get all/most of your money back after you refinance.

    With smaller rehab budget, your best route might be house hack and you can focus a little of things that will not require opening walls (At the beginning you can avoid replumbing, and rewiring, and focus more on floor, painting, kitchen cabinet, .....). Some houses have basements that are partially finished, and already wired and plumbed, and all you need are some touches to be able to house hack it.

    Feel free to reach out. I am always open to more conversation over the phone or coffee!

    3Reply
  • Ross Asher
    Member since 2020 · 11 posts · 2 votes
    5y

    @Michael Haas would love to talk with you about your idea of delay the BRRRR if you have time.

    1Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
    5y

    I always have time to talk about Real Estate Investing @Ross Asher! Just sent you a PM with my info to coordinate, cheers!

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    4Reply
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