How do I find BRRRR opportunities with limited time?

Question

Hello BP,

I live about an hour away from Atlanta and I have one property in Orlando which is an STR. I'd like to continue investing in both of those areas but I'm not sure where to start looking and my time is limited this time of year (I'm a Tax Accountant). What are some of your tips and tricks to finding good fix and rent (BRRRR) opportunities?

Bonnie Low · Answer

Hi, Eric. We do BRRRRs in our local market (nor Cal) but have also done some out of state (eastern Idaho). It's definitely harder out of state.They're harder to find, harder to evaluate and harder to assemble a team to do quality work and ensure it gets done. But it can be done. Personally, I would not have wanted to take that on without being very familiar with the process already. When we were focusing out of state we'd take a long weekend or a week and spend time on the ground with a local realtor, looking at properties and writing up a dozen or more offers. This gave us an opportunity to really get to know the area and have a sense of what the ARV should be on a given property. She got a good feel for exactly what we were looking for which helped her target for us. It also gave us a sense of how realistic our Realtors' knowledge of repairs and repair costs was (pretty mediocre) as we walked properties with her. Because of this, when we returned home we would facetime with her on walkthroughs so she could show us the condition of the properties and we could do the estimating ourselves and have confidence in our numbers. She hooked us up with some contractors and subs- some worked out, some didn't, but it was ultimately better than trying to find them all on our own. You can then leverage the relationships with the ones you like because they will also know quality operators in other trades. I would recommend that any time you get a property under contract you put an inspection clause in it (foolish to ever waive this except on new construction in my opinion) and YOU go and look at the property during the inspection phase. You'd be surprised what others missed. Do this at least until you are very, very confident in your team. Once you get it purchased, draft a detailed scope of work, go over it with your GC. Before payout of each phase, get a visual inspection confirming the work was done to your satisfaction. Again, facetime works if you can't go there in person. Set that expectation with your GC or with each of your subs if you GC it yourself. Since you're new to investing, I'd try to spend as much time there as possible to get familiar with the process. It's not a requirement, of course. Just a very strong recommendation from an experienced BRRRR'r. Future projects will get easier. Good luck to you!

Eric Garcia · Answer

I'm interested in BRRRRing an STR in the MCO market. I have one STR already so that, obviously, makes me an expert LOL.

Jay Breitlow · Answer

Hi @Eric Garcia, before I respond are you BRRRrrrring STR or LTR?  B/c different answers near MCO for that question. 🍻