Top Markets for BRRRR 2024

[Ryan G.]

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

[Ko Kashiwagi]

Hi Ryan,

Getting 100% of the cash out of the BRRRR is pretty difficult in this market but it's still possible. Some BRRRR markets I see in those price ranges are Columbus, Birmingham, Jacksonville, Tyler, St Louis. Whether you prefer a market close to 80k or 170k sounds like a matter of a preference between cash flow and appreciation/equity.

[David J. Einstein]

Any interest in Florida's Panhandle, the Panama City Beach to Santa Rosa Beach area?

[Travis Biziorek]

Hey Ryan, I'd be another vote for Detroit. 

I personally have 12-doors there and focused on the BRRRR method when I was building my portfolio. I help investors do the same thing. I actually moved from the Bay Are to Detroit Metro from 2017-2022 but I'm back in CA now.

Getting all of your cash out is fantastic, but not always doable. That said, we're still having success doing it but it's become increasingly rare. I always tell folks to expect to leave $5,000 - $10,000 in a deal.

This assume you're all in for $75,000 - $95,000. 

You're $80k - $170k range is pretty wide, and I'd be surprised if anything over ~$130k ARV actually produces net cash flow assuming 75% LTV on a refi. If you're ok running slightly negative cash flow in an effort to get your capital back, that's a different story. And it will open up a few more options for you.

[Jordan Ray]

Quote from @Ryan G.:

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

Memphis, TN is where its at! Let me know if I can help you in any way in this market! Talk soon!

[Michael Smythe]

@Ryan G. another vote for Detroit!

[Nicholas L.]

@Ryan G.

OOS BRRRR is exceptionally difficult. will you be traveling to your chosen location in person to supervise and manage your projects? if not, how will you accomplish the many steps that a successful BRRRR requires remotely?

also, all in purchase + rehab of <$100K, while possible, has the potential to put you in challenging areas with very, very gnarly rehabs.

[V.G Jason]

I've done a ton of OOS rehabs, very rarely are you taking all your money back out. But with that said, you're definitely heading the right direction.

This is still, in my opinion,  the best way to get started but all the risk around it are significantly more precarious than the yesteryears. I'd really tell folks to prioritize getting the location of the property and their systems in place well vetted before playing ball. It's not for the faint of heart. 

Too many wholesalers, contractors, etc., are in the way. You will slip up if you don't come trim.  The best cities I've done it in are actually the more expensive one's because there's more willing of a seller to let me buy deep(as they're likely owning the house mortgage free) and every fix I do makes more than a 1x on it simply cause of the neighborhood. Say Raleigh and Nashville have been the best, then Charleston & San Antonio. 

[Remington Lyman]

Quote from @Ryan G.:

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

 I recommend checking out Ohio

[Samuel Diouf]

Columbus is one of the best markets for BRRRRs. The city is an appreciation focused market that has entry-level prices. You can still pick up value-add deals for a discounted price and get great contractors to turn the place in around 3 months. Pulling of your money out is considered a home run as this market is on a massive growth trend, but you can get base hits all day here in Columbus. 

[Jimmy Lieu]

Quote from @Ryan G.:

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

Hi Ryan, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

[Alfath Ahmed]

Quote from @Ryan G.:

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

Hey Ryan, I would check out the Columbus market. It has been booming for the past couple of years with strong job growth and population increase. I personally invest here for both the cash flow and appreciation. I recommend looking into areas near economic bases - close to Nationwide Children’s Hospital, Ohio State Campus, New Albany, etc.

Most of my clients purchase turnkey investment properties in areas like Old North, Merion Village, Southern Orchards, Old Towne East/King-Lincoln Bronzeville, Driving Park, North Linden, North Hilltop, Franklinton, Reynoldsburgh, and Hungarian Village.

My BRRRR and Fix & Flip Investors like to buy in areas like Eastmoor, Hilltop, Whitehall, and Linden. These areas have appreciated a ton and have seen a lot of growth.

[Alex Bekeza]

Check out South City Saint Louis (Dutchtown area). 

[Ryan G.]

Thanks for all the feedback, looking in to all of these markets now.

[River Sava]

Have you explored surrounding Charlotte, NC areas? A lot of pockets with BRRRR potential.

[Ryan G.]

Quote from @River Sava:

Have you explored surrounding Charlotte, NC areas? A lot of pockets with BRRRR potential.

I haven’t. Do you have any investor friendly agents that I should talk to? 

[River Sava]

Quote from @Ryan G.:

Quote from @River Sava:

Have you explored surrounding Charlotte, NC areas? A lot of pockets with BRRRR potential.

I haven’t. Do you have any investor friendly agents that I should talk to? 

 Sure do, sending you a dm

[Dustin Roquemore]

I am focusing on Detroit at the moment.  Average housing price in Detroit is still really low compared to the national average and Detroit's appreciation over the last few years has been good and trending well.  Also, the rent to value numbers are really good.

I personally also factor in a location where it is easy to have someone that help me remotely source the deal, rehab it and then manage the property all under one shop. Makes out of state investing much easier for me. Cheers to your 1st BRRRR!!

DM if you got any specific questions.  

[Jack Schwartz]

Upstate NY, to start building your portfolio,

[John Mason]

Start but make sure you visit the place and meet the Team!!

[Keyano Burgess]

Hi Ryan,

There are many markets where you can succeed including Memphis and Detroit. That being said, you are only as good as your boots on the ground is in any given location. I am located in Cleveland and have a great team of property managers, contractors, attorneys, and lenders. I specialize working with investors and would love to have a conversation and see if I can help. I will send you a dm.

Thank you,

Keyano

[Louisa Davis]

Quote from @Ryan G.:

Hi BP, 

Based in CA and gearing up for my first BRRRR (remotely). I'm in the process of choosing a market to focus on and wanted input on strong BRRRR markets right now. Looking for your suggestions.

I'm aiming for the best shot at getting as much money out of the deal so I can do several more. Specifically, eyeing entry-level markets with all in purchase + rehab between $80k to $170k.

What markets do you think I could maximize the likelihood of recouping most, if not all, of my cash? I’m in discussions with teams in Memphis and Detroit, but I'm still open to exploring other markets before making a final decision.

Thanks in advance for any suggestion and input.

 I would think about this in terms of A) prices to access the market and B) overall market growth. 

Choose a market where you can afford a property in a B- or higher class neighborhood, AND where the market itself is growing in population size. That's not the case across the US. 

[Josh Mac]

Quote from @Travis Biziorek:

Hey Ryan, I'd be another vote for Detroit. 

I personally have 12-doors there and focused on the BRRRR method when I was building my portfolio. I help investors do the same thing. I actually moved from the Bay Are to Detroit Metro from 2017-2022 but I'm back in CA now.

Getting all of your cash out is fantastic, but not always doable. That said, we're still having success doing it but it's become increasingly rare. I always tell folks to expect to leave $5,000 - $10,000 in a deal.

This assume you're all in for $75,000 - $95,000. 

You're $80k - $170k range is pretty wide, and I'd be surprised if anything over ~$130k ARV actually produces net cash flow assuming 75% LTV on a refi. If you're ok running slightly negative cash flow in an effort to get your capital back, that's a different story. And it will open up a few more options for you.

 Hello Travis,how many deals are you doing a month lately?And has the market been shifting overthere?

[Travis Biziorek]

Quote from @Josh Mac:

Quote from @Travis Biziorek:

Hey Ryan, I'd be another vote for Detroit. 

I personally have 12-doors there and focused on the BRRRR method when I was building my portfolio. I help investors do the same thing. I actually moved from the Bay Are to Detroit Metro from 2017-2022 but I'm back in CA now.

Getting all of your cash out is fantastic, but not always doable. That said, we're still having success doing it but it's become increasingly rare. I always tell folks to expect to leave $5,000 - $10,000 in a deal.

This assume you're all in for $75,000 - $95,000. 

You're $80k - $170k range is pretty wide, and I'd be surprised if anything over ~$130k ARV actually produces net cash flow assuming 75% LTV on a refi. If you're ok running slightly negative cash flow in an effort to get your capital back, that's a different story. And it will open up a few more options for you.

 Hello Travis,how many deals are you doing a month lately?And has the market been shifting overthere?

Our firm has done more than 150 deals this year already. 

We're seeing a lot of investor demand for two main reasons:

1) Folks are starting to realize Detroit's potential
2) A lot of previously decent markets no longer pencil

[Josh Mac]

Quote from @Travis Biziorek:

Quote from @Josh Mac:

Quote from @Travis Biziorek:

Hey Ryan, I'd be another vote for Detroit. 

I personally have 12-doors there and focused on the BRRRR method when I was building my portfolio. I help investors do the same thing. I actually moved from the Bay Are to Detroit Metro from 2017-2022 but I'm back in CA now.

Getting all of your cash out is fantastic, but not always doable. That said, we're still having success doing it but it's become increasingly rare. I always tell folks to expect to leave $5,000 - $10,000 in a deal.

This assume you're all in for $75,000 - $95,000. 

You're $80k - $170k range is pretty wide, and I'd be surprised if anything over ~$130k ARV actually produces net cash flow assuming 75% LTV on a refi. If you're ok running slightly negative cash flow in an effort to get your capital back, that's a different story. And it will open up a few more options for you.

 Hello Travis,how many deals are you doing a month lately?And has the market been shifting overthere?

Our firm has done more than 150 deals this year already. 

We're seeing a lot of investor demand for two main reasons:

1) Folks are starting to realize Detroit's potential
2) A lot of previously decent markets no longer pencil

 Very nice!Sounds like your killing it over there.Hiw long does a deal take from start to finish?Also what grade neighborhoods are you doing?

[Jake Baker]

@Ryan G.

Every market has good deals, you just have to be good at finding them.

I BRRRR in Jacksonville FL. We recently had a house on the market listed for 240k and it sat for 60 days. We decided to pivot and BRRRR instead and it appraised fro 260k!

We do 20 Flips/BRRRRs per year in Jacksonville FL and we use a hybrid approach. It is also very hard to "perfect BRRRR" here.

We BRRRR 8-10 per year and the flips supplement the money left in the BRRRRs.

How do we choose which ones to BRRRR? - Location. It is not about how much is left in the deal for me. It is about the long term appreciation of the asset.