Where and when did you do your last BRRRR?

Question

Hi all, I'm just now getting into investing out of state.  (I'm currently in San Diego, CA).  I've been trying to find properties to BRRRR with but finding most of the properties on the market don't fit BRRRR criteria.  I'm curious what location and how long ago did you do your last BRRRR?  And did you find this deal on market or off market?  TIA

Lee Ripma · Answer

@Steve Meyers

I don't BRRRR anymore, I do value add MF. Same result, less risk. BRRR just takes very distressed properties that need a lot of work. I go into more detail on this in my BP podcast 373. So the last BRRR I did was purchased in 2018, put debt on it in 2019 after getting all my except around 5% out of it and then sold earlier this year.

Colby Hanley · Answer

The last success for me,  was a house and cottage that I (refi) in April 2022 $720,000 30-year fixed at @3.25% located in Makawao Maui, renting for $5,500 with net cash flow of $1500 per month.  The property had a $619k acquisition cost, $145k rehab, and $1.1m ARV (appraised).  So I have about $40k in the deal after everything is said and done.  Like others say they are not common, but they are out there even in Hawaii.

Seth Hochberg · Answer

I've BRRR'd a few properties in the Baltimore, MD market this year with no plans to stop. All deals were deals I found myself on the MLS. The interest rates have hurt the cash flow, but there's a lot less competition, allowing me to negotiate a better purchase price.

But Baltimore is a hard market to invest in out-of-state. I live in DC, and almost never visit my properties, so I'm operating semi-out-of-state. However, I did live in Baltimore for 8 years and am comfortable with the market.

Nate Sanow · Answer

Last successful exit (refi) July 2022. $81k acquisition, $20k rehab, $150k ARV (appraised) $112,000 30 year fixed at too much interest 😂 located in Tulsa , rented for $1200 with net cash flow of $242 per month. last successful acquisition, $85k, august 2022 same city, but not quite done as a flip of mine took my focus , but similar numbers projected

These deals are never found, they are made. I’m at a point where my network brings them to me and despite being licensed not dependent on the MLS … although in recent months more low hanging fruit of overpriced property sitting for a LONG time is on my mls and sometimes looks like an option, I still prefer off market

Allan Smith · Answer

Chattanooga. Refi was about May of this year. Most definitely off market. All of mine are.

Steve Meyers · Answer

@Nate Sanow Nice, I've been looking into the Tulsa market myself!

@Lee Ripma Thanks for the insight, if you don't mind me asking what markets are you targetting for MF?

Jack Seiden · Answer

So the brrring model for the most part with some exceptions is usually a trade off right now. So for example D.C. where I am located has high enough gross margins I can still pull most of my money out on a brrrr but my cash flow will be sharply negative because it is a high cost (high debt) market. I could go to 30 mins north to baltimore to brrrr but given the low margins it would be very hard to not be underwater on a brrrr because it is a cheaper and therefore lower margin market however the cash in baltimore is much better than D.C. . So define what is more important recycling of capitol in which case i'd go for a higher priced market such as D.C. Or cash flow in which i'd recommended a cheaper priced market like Baltimore and buying turn key or even just dated home.

Kapono Kobylanski · Answer

I went to a meet-up recently and there were two men there from the west side that have done quite a few BRRRs just this year alone! Brandon Rabe @breakingrythm on instagram is one of the hosts. There's one tonight at 6 pm on zoom. The one I went to was in town and face-to-face. I think they have them monthly. Good luck!

Peter Eberhardt · Answer

As everyone has said, you will be hard pressed to find a deal deep enough to BRRR on market, especially if you are using HM. However, you do have the upper advantage locally as a agent to quickly access owner records of distressed looking places. I uber for hours on end in San Diego and am always sending addresses to my wholesaler just incase something falls into place.

Andrew Syrios · Answer

A few weeks ago; Kansas City

Where and when did you do your last BRRRR?

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