Best states to invest in for BRRRR

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Best states to invest in for BRRRR

Rajshekar ManalikerPro Member
Member since 2023 · 40 posts · 13 votes

Hello Everyone, 

I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?

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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y

@Stephen Akindona

I also invest in out of state markets - 2 of which are over 2000 miles from my primary residence. 

It just irks when first time investors trivialize the experience of an out of state BRRRR as their first investment. It's stacking risk factors and a bad idea. It's really hard, expensive, and stressful. You can still set a pile of money on fire in your own back yard, but it does remove one very important risk factor for a first time investor that, like we all were in the beginning, doesn't have the reps to know what they are doing.

I just want to be a voice of reason and reality in a sea of realtors, turn key providers, and other forum lurkers telling folks how easy it is - just build your core 4! Yeah! It's that easy! Intel is coming to Columbus! Rust belt boom town!

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  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hey Rajshekar - 

    Have you looked into Charlotte, NC at all? A lot of opportunity in/around the area. Happy to connect with you to chat further. 

    [email protected]
    5Reply
  • Joseph Bui
    Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
    2y

    Hi Rajshekar, I do BRRRs in Detroit and Memphis. I work with a great team that sources the property, manages the rehab and provides property management, so they are perfect for out of state investors. Happy to connect you with them.

    2Reply
  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    2y

    I've seen my clients find success in the following markets for BRRRR properties.

    As for assessing deals, I do agree that it comes down to building a team of folks who can support your efforts well. I have some good contacts for building your team in Birmingham, AL and Kansas City, MO if you need some support.

    o Cincinnati, OH
    o Cleveland, OH
    o Birmingham, AL
    o Indianapolis, IN
    o Memphis, TN
    o Southhaven, MS
    o Baltimore, MD
    o Abilene, TX
    o Kansas City, MO
    o St. Louis, MO

    [email protected]417-605-2196
    5Reply
  • Madhuri Arora
    Member since 2023 · 4 posts · 0 votes
    2y

    I'm looking for BRRR properties too....mostly multifamily. Love to connect with a strong team.

    0Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @River Sava:

    Hey Rajshekar - 

    Have you looked into Charlotte, NC at all? A lot of opportunity in/around the area. Happy to connect with you to chat further. 


     Thank you so much river, I will reach out to you. 

    0Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @Joseph Bui:

    Hi Rajshekar, I do BRRRs in Detroit and Memphis. I work with a great team that sources the property, manages the rehab and provides property management, so they are perfect for out of state investors. Happy to connect you with them.


     Awesome, glad to hear Joseph. Please let me know the best number to reach you at.

    0Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @Nate Herndon:

    I've seen my clients find success in the following markets for BRRRR properties.

    As for assessing deals, I do agree that it comes down to building a team of folks who can support your efforts well. I have some good contacts for building your team in Birmingham, AL and Kansas City, MO if you need some support.

    o Cincinnati, OH
    o Cleveland, OH
    o Birmingham, AL
    o Indianapolis, IN
    o Memphis, TN
    o Southhaven, MS
    o Baltimore, MD
    o Abilene, TX
    o Kansas City, MO
    o St. Louis, MO

     Thank you very much, @Nate Herndon, I will reach out to you soon. 

    0Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @Madhuri Arora:

    I'm looking for BRRR properties too....mostly multifamily. Love to connect with a strong team.


     Hello Madhuri, if you wish we can team up to find the properties and rehab. 

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Rajshekar Manaliker:

    Hello Everyone, 

    I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?


     My opinion, in your case in would be Washington state. If you lived in Texas then it would be Texas, if in Maine then Maine and so on. Managing a rehab from a far in a market you do not know is a recipe for disaster. 

    Hurst Real Estate, INC4.991 Reviews
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    5Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @Jay Hurst:
    Quote from @Rajshekar Manaliker:

    Hello Everyone, 

    I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?


     My opinion, in your case in would be Washington state. If you lived in Texas then it would be Texas, if in Maine then Maine and so on. Managing a rehab from a far in a market you do not know is a recipe for disaster. 


    Thank you Jay for your advice, I always wanted to buy in the same state but Washington has been a little tricky when it comes to BRRRR properties to find.

    0Reply
  • Joseph Bui
    Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
    2y
    Quote from @Rajshekar Manaliker:
    Quote from @Joseph Bui:

    Hi Rajshekar, I do BRRRs in Detroit and Memphis. I work with a great team that sources the property, manages the rehab and provides property management, so they are perfect for out of state investors. Happy to connect you with them.


     Awesome, glad to hear Joseph. Please let me know the best number to reach you at.

    Made a connection request. Let’s chat on DM. 

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Rajshekar Manaliker:
    Quote from @Jay Hurst:
    Quote from @Rajshekar Manaliker:

    Hello Everyone, 

    I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?


     My opinion, in your case in would be Washington state. If you lived in Texas then it would be Texas, if in Maine then Maine and so on. Managing a rehab from a far in a market you do not know is a recipe for disaster. 


    Thank you Jay for your advice, I always wanted to buy in the same state but Washington has been a little tricky when it comes to BRRRR properties to find.


     yeah I get it but there is no magical market. I have seen west coast buyers buying in cheaper states just because it is cheaper. But the risks do not change but you are a 1000 miles away. Contractors know that. It does matter. 

    Hurst Real Estate, INC4.991 Reviews
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    4Reply
  • Rajshekar ManalikerPro Member
    OP
    Member since 2023 · 40 posts · 13 votes
    2y
    Quote from @Jay Hurst:
    Quote from @Rajshekar Manaliker:
    Quote from @Jay Hurst:
    Quote from @Rajshekar Manaliker:

    Hello Everyone, 

    I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?


     My opinion, in your case in would be Washington state. If you lived in Texas then it would be Texas, if in Maine then Maine and so on. Managing a rehab from a far in a market you do not know is a recipe for disaster. 


    Thank you Jay for your advice, I always wanted to buy in the same state but Washington has been a little tricky when it comes to BRRRR properties to find.


     yeah I get it but there is no magical market. I have seen west coast buyers buying in cheaper states just because it is cheaper. But the risks do not change but you are a 1000 miles away. Contractors know that. It does matter. 


     Got it, thank you I will be cautious. 

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Rajshekar Manaliker

    i'm with @Jay Hurst

    those low midwest prices look great.  but you know what else they come with?  low ARVs.

    here in Pittsburgh you can buy a single family home for 25K, put 100K into it, and the ARV will be... 100-125K. that ain't a BRRRR.  that's a gift to the City.

    in WA state the purchase prices are higher, but so are the potential ARVs.

    go watch every single one of Tarl Yarber's YouTube videos on flipping and BRRRRing in WA and then come back here with questions.

    good luck

    5Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Rajshekar Manaliker:

    Hello Everyone, 

    I am a resident of Washington State but I am looking out for leads and suggestions on which states are good for BRRRR to invest in. If Yes, how feasible or best way possible to judge the property and analyze the repair cost and be successful?


     Ohio, 

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Bob S.

    Ohio... IF he is either (1) going to go there in person to do it himself, OR (2) going to go there in person to set up his team himself.

    if he does it from Internet, his chances of success are low =)

    1Reply
  • Madhuri Arora
    Member since 2023 · 4 posts · 0 votes
    2y

    @Rajshekar Manaliker sure..let's connect

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Nicholas L.:

    @Bob S.

    Ohio... IF he is either (1) going to go there in person to do it himself, OR (2) going to go there in person to set up his team himself.

    if he does it from Internet, his chances of success are low =)


     Well as I mentioned 100 x a week, never do biz out of state without a team, I have seen so many fail as they think they can do it all from the internet. It took me years to be able to do it that way

    All the best 

    3Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    2y

    @Rajshekar Manaliker It is interesting that so many people who do not invest out of state will tell you not to invest out of state. The biggest and most successful investors all invest in multiple markets. Please do not fall into the trap of you need to invest locally. Is it harder to invest OOS, of course it is but it is 100% doable. What is important is building the team in the market you choose to invest in. You absolutely CAN do this without ever going and visiting the market you choose. It is about building relationships and networking.I get why people will say invest in your own backyard but that is NOT the only way, investing where you live does not guarantee success, you can still buy bad deals that don't cash flow or won't appreciate right where you live! Gaining knowledge and working with an experienced team is how you get success no matter what market you are in.

    5Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    As long as the buy price is right can be anywhere in the country 

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Stephen Akindona

    i don't disagree with what you posted but I actually think OOS has gotten harder since David Greene was doing BRRRRs via text message back in 2016.

    you said it yourself - "What is important is building the team in the market you choose to invest in."

    New investors consistently don't do that.  They buy a property on Zillow just to "do a deal."

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    And to be clear I do both.  I have the primary market where I live, in in my secondary market I have both a team and some family.

    1Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Stephen Akindona:

    @Rajshekar Manaliker It is interesting that so many people who do not invest out of state will tell you not to invest out of state. The biggest and most successful investors all invest in multiple markets. Please do not fall into the trap of you need to invest locally. Is it harder to invest OOS, of course it is but it is 100% doable. What is important is building the team in the market you choose to invest in. You absolutely CAN do this without ever going and visiting the market you choose. It is about building relationships and networking.I get why people will say invest in your own backyard but that is NOT the only way, investing where you live does not guarantee success, you can still buy bad deals that don't cash flow or won't appreciate right where you live! Gaining knowledge and working with an experienced team is how you get success no matter what market you are in.


     The key is knowing what you are doing. You should cut your teeth locally. You simply do not know what you do not know.  As lender (as well as investor) I see deals all the time by newbie out of state investors who have no idea what they are doing that are disasters. They are disasters because they do not yet know how to value properties, do not know yet how to PM , blindly trust a wholesalers numbers etc and find themselves in trouble as the property they were told was going to be worth 250k is actually worth 200k and they are stuck.  ALL of these issues can happen locally as well for sure, but if you learn locally the lessons are generally not as expensive. 

    Hurst Real Estate, INC4.991 Reviews
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    3Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Rajshekar, I'm a big advocate for Detroit and own 14-doors there.

    I just finished a duplex and am closing on my DSCR loan this week. But I also do a lot of SFH's and have a great ground team.

    Happy to send you some resources on Detroit if you're interested. It's a great market but you really need to understand it or work with a strong team that does.

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    Agree with @Nicholas L. and @Jay Hurst - for those of us that live in reality and have nothing to sell, it's really hard to execute a BRRRR from across the country. If you like a market, just get a base hit deal there and start spending time at the property getting to know the house, the market, and local vendors. If you want to take on a mess of a house to BRRRR, do it on the 2nd or 3rd one. Or do it close to home.

    I feel like half of my posts on BP are telling people to stop speaking so casually about a BRRRR project. You're buying a disaster of a property. And you don't completely know what you have until you already own it. Couple that with a market that you do not know, local vendors that will upcharge substantially because you're dumb money from out of state, and let's just call it what it is - you are blindly trusting strangers - agents, turnkey providers, contractors - that will make money if you buy a house in their market. We've taken on fixers from out of state, so I'm not saying that it is impossible, but I was also on site at least once a month for 4-6 months doing a lot of the work myself alongside local vendors.

    3Reply
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