How to find a market to invest in?

[Amod Karve]

Hi All,

I currently own two rental properties (1 in NJ and the other in OH). Both of these were done with the traditional approach of 25% down, 75% financed and little rehab needed. After reading Brandon's book, I'm looking to try the BRRRR strategy. I live in NJ and the market for BRRRR here isn't great. For those of you who've done out of state BRRRR, I would love to find out how do you go about determining the market to invest in?

I would also love to connect with out of state BRRRR strategists to learn more.

Thanks in Advance for all help

Amod
     

[Ricardo Hidalgo]

Quote from @Amod Karve:

Hi All,

I currently own two rental properties (1 in NJ and the other in OH). Both of these were done with the traditional approach of 25% down, 75% financed and little rehab needed. After reading Brandon's book, I'm looking to try the BRRRR strategy. I live in NJ and the market for BRRRR here isn't great. For those of you who've done out of state BRRRR, I would love to find out how do you go about determining the market to invest in?

I would also love to connect with out of state BRRRR strategists to learn more.

Thanks in Advance for all help

Amod
     

I think it depends on the portfolio you are trying to build. Some people like an appreciation based market in affluent areas because they have a big income so it better for them to take equity positions since they are being taxed bracket above 37%. 

Others are trying to focus on cashflow because they are trying to become financially free and have consistent income coming in. I prefer to take on both positions to have a strong back end and front end to my business. If the market is coming down then my cash flowing properties will support overhead and if the market pumps back up then I will sell off the appreciation based property to move capital into different opportunities.