BRRR in the Bay Area
My name is John Slegg. I am looking to do my first BRRR in the Bay Area. I have my financing already set up, and have a contractor to do the work. I also am getting set some deals from a lot of wholesales that I have connected with over the last few months. My budget is around $700,000, $600,000 I am going to use to buy the house and $100,000 for rehab. Do you think my numbers are realistic and will I be able to find a property in the Bay Area that fits my buy box? What neighborhood would people suggest I look at in the Bay Area?
Some of the neighborhoods that I am looking at are not the best areas (D neighborhoods). Do you think it is a bad idea to do a BRRR in a low level neighborhood? I worried about what level of tenants I might attract in these area.
Any help anyone has would be really appreciated.
Most Popular Reply
Where are you based in the Bay Area? A few places that came to mind where this number can work are Hollister, San Lorenzo, and Contra Costa County. And with $100k, you are looking at mostly cosmetic rehab. There may be condos/townhouses in the B neighborhoods where this number can work, but you have to get a really good deal and make sure to check the rental restriction from the HOA.