Can BRRRR be done in Madison?

Question

Can BRRRR be done in Madison anymore? It seems to me the market is too overpriced and the cost and timelines of contractors would make it too slow and unreliable on the Rehab, but I'd love to hear a counter argument. Maybe you just need a higher budget? To buy off market? Have a great set of contractors?

Chase Binnie · Answer

I come across deals pretty often— from my own marketing efforts or from my network of investors & wholesalers. Check out the wednesday night meetup, the madison reia, or start building some friends who are active in real estate & you’ll come across off-market opportunities.

The economy is great & many people are educated & have good paying careers. Most feel confident buying & holding here so in the desirable locations the rental income just maintains while you gain appreciation equity. It seems like there are investors buying negative cashflow rentals.. not my style. I see a lot of folks (including myself) picking up rentals in the small towns within commuting distance.

Seth Nowak · Answer

Sounds like you answered your own question partially . . . if you can find a deal, and can line up contractors and/or do the work yourself, it could still work. How about creating a new category of "slow-habs", in which you do only the repairs and upgrades needed for the property to be rentable (in the currently hot market that allows higher than usual rents), then schedule the contractors for months down the road when they're available. This could work if you have financing arrangements that allow for a longer hold period before refinancing and selling.

Andy LaVoy · Answer

@Chase Binnie Thanks for that! Where can I find more info about the Wednesday evening meetup?