Should I use BRRRR

Question

Hey, I have $80K-$90K liquid money Interested in investing in real estate

I have experience of 2 years of wholesaling

My goals are to increase capital + accumulate properties.  Would love to hear suggestions

Ashish Acharya · Answer

I hope you are running as an S-Corp to save SE taxes. You are doing all the tax savings such as HRA, 401k hiring kids, and writing off auto. Once you invest in rentals, you can also wipe out your income form wholesaling to pay 0 taxes.

$80K-$90K ready to invest and your two years of wholesaling experience, you’re in a great spot to start building your real estate portfolio. The BRRRR strategy could be perfect for you—it’s a smart way to buy, rehab, rent, refinance, and repeat, allowing you to grow your capital while accumulating more properties. This is true especially when you have access to deals as a wholesaler. You’re already ahead of the game given your background in finding deals. Just be sure to keep a close eye on rehab costs and timelines to ensure you’re getting the best return on your investment. BRRRR could definitely help you reach your goals of increasing capital and building a property portfolio.

River Sava · Answer

Hi Omri -

With your wholesaling background, you’re definitely on the right track. What market are you thinking about? Also, as others have mentioned, having a solid team in place—like contractors, property managers, and lenders—can make a huge difference, especially if this is your first rehab.

Caleb Brown · Answer

BRRR would be viable. You can use hard money and start buying properties then refi out of it. Build a team. Happy to chat if you look OOS in the Kansas City area. Great market for BRRRs

Steven Goldman · Answer

Hi Omri: Indiana and Ohio are easier entry markets. You should determine your market and then gather your team together before you start looking at properties. Find a realtor you can work with, and familiarize yourself with the available financing before you submit a contract. Good luck.

Jimmy Lieu · Answer

Hi Omri! With your wholesaling experience, you're already ahead of the game. If you're considering investing out of state, I suggest looking into the Columbus market. I personally have purchased rentals here that are clean BRRRRs. And you can find deals here around $120k-180k. You can target properties that need light rehabs to start. Happy to connect and answer any questions you may have.

Samuel Diouf · Answer

BRRRR would be a great option. You could keep wholesaling, finding deals off-market, and buy one of the deals you find that fits your criteria.

Patrick Drury · Answer

@Omri AvitalIf you used to be a wholesaler and have experience finding off-market deals keep hitting the pavement either cold calling or sending direct mail till you find a deal that works. The best BRRRR deals are not going to be on the market they are going to be off-market

Travis Biziorek · Answer

What markets are you looking at Omri?

I do a lot of BRRRR deals for clients in Detroit. Our typical SFH deal is currently in the $80k-$90k range all-in (purchase price + rehab).

I just had a client's project appraisal come in at $122,000 and he was into it for $82,000 so that's a huge win.

So yes, doing BRRRR's at this price point is possible but you need a really solid team behind you.

Connor Hibbs · Answer

Hi Omri, BRRRR is a great investing tool to build up a portfolio. I'd recommend finding some properties with lighter rehabs to start so that you can build up experience quickly as experience is the largest factor when determining your loan options as a lender. Something good to keep in mind too is to keep a contingency in your budgets to ensure you've always got enough funded for the rehabs.

Once you get a few under your belt then your LTV's will be higher and your rates will be lower. Also keep in mind that if you are looking to BRRRR these properties that there should be a decent amount of need for rents in the areas you're working.

I do offer BRRRR loans for the rehab and refi's as well so if you did want to see examples of what pricing and required liquidity may look like at different exp levels I'd be happy to help however I can.

Should I use BRRRR

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