BRRRR in Memphis from long distance.

[Ryan G.]

First post on BP, hi all.

I'm engaging Memphis agents so I can attempt a first BRRRR. This will be a long distance BRRRR (I'm located in California).

I've got 8 turn-key SFRs but now want the money to work harder.

Do out of state BRRRR investors have tips on getting started and/or pitfalls to avoid?

Memphis investors, is it realistic to expect deals where I can buy a SFH for $100,000, spend $40,000 on renovations, and then have it appraised for $170,000+? Trying to start small, learn the process, then do a few of these a year if it's successful.

[Scott Bowen]

Hi @Ryan G.,

I currently own 5 SFHs in Memphis and just completed my first BRRRR there. Like you, I wanted a better return on my money which is why I am moving towards BRRRRs going forward.

For my BRRRR property I purchased it for $68K and spent $20K in rehab. It appraised for $120K, and rented for $1095 a month. At 70% LTV this left 10K in the deal and achieved a 14% CoC. This was in a C+ area of 38128.

I think the numbers you mentioned are doable. I recommend getting a scope of work from your PM while you're still under contract so you have an accurate estimate of what your rehab costs will be.