Has anyone had an out of state BRRRR actually work in the last 2 years?

[Travis Timmons]

I feel like 75% of my activity here is telling new investors that out of state flips or BRRRRs and buying an $80k house in an economically stagnant or depressed area is a bad idea. Somehow, in a market that is not forgiving at all, many seem to think that buying a heavy rehab in the rust belt will lead to the foundation of a solid portfolio and sustainable success. Maybe I'm the "Get off my lawn!" grumpy old guy, so I'll ask -

Has anyone actually made an out of state BRRRR work in the last two years that is relying on their local "team" of agents, contractors, PMs?

[Allie McAlister]

Hey Travis — great question! I actually work with a lot out-of-state investors actively doing BRRRRs, and yes — they can still absolutely work, if you have the right local team in place. 

In Memphis, for example, we still see solid cash-flow opportunities with lower entry points, but the key is partnering with a reliable contractor, property manager, and agent who understands the market and numbers on these deals. We may be seeing more partial BRRRRs in the market now, but these can pencil out well. 

If you'd like, I can share a couple of examples of recent out-of-state clients who've BRRRR'd successfully here. It's all about buying right and building a trustworthy local team.

Best of luck!